KUALA LUMPUR: Maybank Investment Bank Bhd (Maybank IB) expects the current volatility in the stock market to persist, particularly in the first quarter 2016.
Maybank IB Regional chartist Research & Economics Lee Cheng Hooi said the factors impacting it would be largely externally induced by headwinds revolving around US monetary policy normalisation, China’s structural slowdown and emerging market impact.
“The sectors to benefit on the Malaysian stock market this year includes infrastructure, telcos and the tourism industry, with more China tourists expected now as they have visa exemption,” he told reporters after the Maybank IB market outlook session here.
Meanwhile, for the first half 2016, he said the key themes to influence the local bourse includes construction, which will be boosted by the execution of the 11 Malaysia Plan (11MP) projects, the state of the ringgit, weather phenomena such as El Nino and Shariah investment.
He said investors should remain defensive in the near term and invest based on selected themes in the face of the current market condition.
The investment bank has picked some of top stocks for this year, naming Gamuda Bhd, Sunway Construction Group Bhd, Cahya Mata Sarawak Bhd, Harbour Link Group Bhd, Genting Bhd and Hong Leong Financial Group Bhd, as among them. — Bernama