Analyst expects FBM KLCI to be in consolidation until four months after election
KUALA LUMPUR, Jan 30 – The FTSE Bursa Malaysia KLCI (FBM KLCI) is expected to consolidate from now until the next general election, an analyst said.
Head of Retail Research, Affin Investment Bank, Dr Nazri Khan said the FBM KLCI will be volatile, every time there is a general election.
“The consolidation period will start now until the about three week after the election, assuming the Barisan Nasional wins at status quo.
“I expect the FBM KLCI to go through a between five and eight per cent correction from now until the general election,” he said after presenting a seminar, “13 General Election Chinese New Year Play Positioning and Trading strategy” today.
However, Nazri said based on the past record, the FBM KLCI will recover to the previous high, three month after the election.
He said after the fall of the FBM KLCI on Jan 21, now was the best time, for investors to accumulate some stocks.
“I think now is the best time to accumulate stocks, especially in Real Estate Investment Trusts (REITs), healthcare and the property sector,” he added.
He predicted that the general election would be held somewhere in March or April.
He also said government-linked and politically-link stocks would be highly impacted by the general election. – Bernama