PUTRAJAYA: Permodalan Nasional Bhd (PNB) expects Bursa Malaysia to trade between 1,700 and 1,800 levels by the year-end on the back of strong fundamentals.
This is also depending on multiple external variables such as geopolitical aspects, 2018 Budget as well as corporate earnings and debts, said group chairman Tan Sri Abdul Wahid Omar at the group's third quarter results announcement here, today.
Wahid shared that the ringgit is still undervalued given the country's strong fundamentals but its outlook is on the positive side.
PNB also revised its gross domestic product (GDP) projections to 5.3 per cent this year from the initial 4.3 per cent.
"What we anticipate and what we wish are two different things," Wahid said when asked on his budget wishlist.
"That said, as a fund manager obviously we would like efforts to continue support the (financial) ecosystem and measures that further support the development of the capital markets,” he said.
“We are also hopeful that the government would look at some incentives (that could help propel) venture capitals,” he added.
President and group chief executive Datuk Abdul Rahman Ahmad is fully aware of the challenging environment within the property development segment. But he is certain that there will be demand for the Merdeka PNB 118 project upon completion in 2021.
“Yes, the property development is challenging but our project is iconic and there is always demand for iconic developments,” he said.
“In fact, we are set to announce a new international hotel for the development in the fourth quarter of this year and that would further enhance the quality of the development.”
Asked if the group would be entering the American market as part of its international portfolio push, Rahman said it is not the right time yet.
“As you know, the US market are reaching record highs and that could be a bit risky and when we want to step into international space, we want it to be in the best terms of generating returns.”
Rahman added that properties and equities investments are still very much a focus for the group, in line with its long term goals to reduce its cash position and increase equity holdings.
PNB had earlier reported an increase of 4.2 per cent and 8.8 per cent respectively in asset under management (AUM) and net income to RM268.6 billion and RM10.05 billion for the third quarter ended August 31 2017.
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