Monday, 23 January 2017

Maybank IB expects FBM KLCI to hit 1,780 by year-end

 Commodity Trading Signals


KUALA LUMPUR: Maybank Investment Bank Bhd (Maybank IB) anticipates that Bursa Malaysia will touch the 1,780 level before the year's over, riding on the back of the recuperation in worldwide oil costs, outside trade, and additionally facilitating in remote store outpouring. 

The benchmark FTSE Bursa Malaysia (FBM KLCI) finished 1.62 focuses at 1,664.89 on Friday. 


Head of retail values, CK Lim, said the worldwide unrefined petroleum costs would keep on being exchanged at amongst US$55 and US$60 per barrel this year because of endeavors by the Organization of the Petroleum Exporting Countries (Opec) and non-Opec countries to decrease raw petroleum supply, which would keep the cost over the low of US$20-US$23 per barrel. 

"This would profit Malaysia, as the economy is firmly connected with the petroleum cost, also that US$55-US$60 per barrel is the earn back the original investment level for oil makers," he told journalists on the sidelines of the bank's market standpoint for 2017. 

He additionally noticed that remote store surges would proceed with this year, nonetheless, the circumstance would not alert. 

"The way that Chinese outside direct speculations have enhanced from 0.3% in the previous three years to 3% at present, has really padded the effect on Malaysia's economy," he included. 


In the mean time, on the outer component, Lim noticed that governmental issues and national banks' strategies would keep on being the key influencers to the budgetary markets. 

"We are expecting races occurring in France, Germany and the Netherlands, and everybody will likewise be keeping intently on the new US President Donald Trump's best course of action. 

"We can't think little of him (Trump) and as we don't comprehend what he will do, it leaves the market in vulnerability and everybody is attending to overhauls on the Trans-Pacific Partnership Agreement and what he will do about it," he said. 

On outside trade, Malaysia Association of Technical Analysts President Nik Ihsan Raja Abdullah said the ringgit was relied upon to ricochet back to the RM4.10-RM4.20 level against the US dollar by year-end in light of specialized assessments. 

"This is in accordance with central perspectives that we agree with Maybank. 


Really, glancing back at the pattern in the course of the most recent two years after the US expanded its loan cost, the dollar reinforced a tad bit before facilitating continuously therefater ... so we expect a comparable example this year," he included. 

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