Breaking News- KLCI Unlikely To Clinch 1,000 Mark This Year-Bernama

KLCI Unlikely To Clinch 1,000 Mark This Year

KUALA LUMPUR, Jan 7 (Bernama) -- The Kuala Lumpur Composite Index (KLCI) is unlikely to clinch the 1,000 mark this year amid uncertainties in the global economy.

OSK-UOB Unit Trust Management Bhd chief executive officer, Ho Seng Yee, said the KLCI was expected to trade between 850 and 960 this year.

The KLCI recorded an intra-day high of 936 at today trading.

"The local stock market is expected to see less volatile trading in the second half of this year as the stimulus packages introduced by the governments worldwide are expected to show effects," he told reporters after launching its first fund of the year, OSK-UOB Capital Protected KLCI Advantage Fund, here today.

Ho said the Malaysian government needed to pump prime further to sustain economic growth and regain foreign investor confidence.

KLCI fell by 39 percent last year, dragged down mostly by foreign investors' sell-off.

He expected the market to be quiet once the Chinese New Year festivities were over amid lack of interest due to global uncertainties.

Ho said last year has been volatile with the markets down a lot and governments worldwide introduced stimulus packages.

"These packages need at least six to nine months before they can show a positive impact.

"Given that scenario, the market is expected to be able to hold on at this level and will gradually improve," he said.

-- BERNAMA