Malaysia's stock market, specifically the FBM KLCI, is predicted to reach 1720 points by the end of 2024, according to RHB Investment. The positive outlook is based on several factors, including the resilience of the US economy, the commencement of fiscal reform in Malaysia, and improving business sentiment. RHB Investment also expects both the US and China to achieve above-consensus GDP growth rates this year. However, there are risks to this outlook, such as inflation and the possibility of the US Federal Reserve not cutting rates. RHB Investment is overweight on several sectors, including property, construction, technology, healthcare, and oil & gas. The target price-to-earnings ratio (P/E) for the FBM KLCI is set at 16x on forward FY25F EPS. [40e34beb]
This positive outlook for the KLCI aligns with the recent injection of RM7 billion into Malaysia's economy by foreign funds, marking the largest injection since July last year. This injection of funds indicates confidence in the country's economic prospects and provides a positive outlook for the market. Local institutions, including the Employees Provident Fund (EPF), have also been increasing their stake in most blue-chip companies, contributing to the growth of Malaysia's stock market. The FBM KLCI has seen an 8% increase since the beginning of the year, closing at 1,569.25 points last Thursday. Foreign shareholding in Malaysian equities fell to 19.6% in March. [3997368a] [a535ea21]
In addition to the positive market outlook, the Malaysian government is in discussions with 12 venture capital firms that have signed a letter of intent to open offices and operate in Malaysia. These firms have an estimated total assets under management (AUM) of US$28.64 billion. The operation of venture capital companies in Malaysia is expected to attract more investors and players in the start-up ecosystem, aligning with the KL20 vision to propel Malaysia into the top 20 of the global startup ecosystem by 2030. [5953b578] [8c66941a]