RHB INVESTMENT SEES FBM KLCI REACHING 1,820 POINTS BY END-2025

KUALA LUMPUR, Dec 12 (Bernama) -- RHB Investment Bank Bhd (RHB IB)has forecasted that the FTSE Bursa Malaysia KLCI (FBM KLCI) will reach 1,820 points by the end of 2025 based on a robust domestic macroeconomic outlook and improved corporate earnings.

In its market strategy report today, RHB IB said the positive outlook for equities in 2025 is predicated on the conducive global and domestic growth environment, robust liquidity conditions, steady corporate earnings and attractive valuations.

"Stable politics, progress on reform, new growth initiatives and news flow on foreign direct investment (FDI) and domestic direct investment (DDI) contribute to a progressive investment climate.

"However, we note the near-term uncertainty arising from the potential policy shifts that could be adopted by United States President-elect Donald Trump -- the aggressive implementation of some or all of his campaign rhetoric could well have material implications for risk assets in emerging Asia," it said.

While anticipating a constructive year ahead, RHB IB opined that the local market will remain supported by a robust domestic economic outlook and ample liquidity, especially from local institutions.

"Additionally, FDIs, pump-priming infrastructure spending, and elevated disposable income from the civil service pay raises should lift consumption due to stronger spending power," it said.

RHB IB also noted that various in-trend thematic plays remain constructive for the small-mid caps segment, and positive traction may resume once the risk-on sentiment improves. 

"These include the Johor and Sarawak thematics, data centre-related plays, infrastructure, trade recovery, commodity plays, revival in semiconductor and electronic manufacturing services (EMS), and trade tension diversion plays," it said.

According to RHB IB, industries with a positive outlook include property, construction, consumer goods, logistics, oil and gas, plantation, renewable energy, and technology.

"The roll-out of major infrastructure projects and improving property sales, along with booming industrial properties and data centre-related jobs, will continue to support the property and construction sectors," it added.

-- BERNAMA