Bursa Malaysia to stay resilient despite lack of catalysts

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KUALA LUMPUR: Bursa Malaysia is expected to remain resilient throughout this year despite the lack of positive catalysts, due to ample domestic funds shift in investor interest to lower liners and quantitative easing from the eurozone and Japan.

Despite better first quarter results, AffinHwang Capital said outstanding issues like uncertainties in the US Federal Reserve, the possibility of a Fitch downgrade and concerns over a potential twin deficit (budget and trade) may dampen the counter going forward.

“First quarter trading momentum has been robust and in line with our expectation, seeing a volume growth of 20.6 per cent year-on-year and 10.6 per cent quarter-on-quarter to 3.56 million contracts,” it said in a research note today.

The research firm has reiterated its ‘hold’ call on Bursa Malaysia, with a revised 12-month price target of RM9. — Bernama