KUALA LUMPUR: Kenanga Investors Bhd expects Bursa Malaysia’s key FBM Kuala Lumpur Composite Index (FBM KLCI) to trade rangebound, rising to 1,780 points by October and breaching 1,800 by year-end, on better clarity over government policies and project rollouts.
"Many investors are keeping a close watch on the indirect impacts from the ongoing trade war between USA and China. So, things are moving at a slower pace," said Kenanga Investors chief executive officer Ismitz Matthew De Alwis.
"By October, as the government announces the mid-term review of the 11th Malaysia Plan and in November, the Budget 2019, we would be clearer on government policy changes and project rollouts.0
"Hopefully by then, investor confidence would resume and FBM KLCI would rise, surpassing 1,780 and possibly 1,800 by year-end," said De Alwis, who is also Financial Planning Association of Malaysia (FPAM) president.
He was speaking to reporters at the sidelines of the Annual Signature Financial Planning Symposium 2018 here today, organised by FPAM.
On the “Asean Connect” prospect , De Alwis said FPAM was supportive of the initiative mooted by the government, Bursa and the Securities Commission to link up with other bourses in Asean.
Two days ago, Finance Minister Lim Guan Eng questioned why Bursa should only link up with Singapore and not other regional stock exchanges.
"I think Asean Connect would offer better market capitalisation opportunity rather than just linking up with only one stock exchange in the region," the minister reportedly said, following Prime Minister Tun Dr Mahathir Mohamad's earlier announcement to review the previous government's proposal to link up Bursa with Singapore Stock Exchange.
Prior to the 14th General Elections, former prime minister Datuk Seri Najib Razak proposed the establishment of a trading link between the two stock exchanges of Malaysia and Singapore.
On how financial planners view the incoming Sales and Services Tax (SST), De Alwis said FPAM was consulting Ministry of Finance on whether sale of unit trusts and insurance policies would be taxed.
"Prior to the imposition of the Goods and Services Tax (GST) in April 2015, unit trusts and insurance policies were not subjected to the SST. But when the GST came into place, life and medical insurance were subjected to 6 per cent while other products were zero-rated.
"So, with the new SST coming onstream 1st September 2018, we are still seeking updates from the government," he added.
Also present at the media conference was FPAM chief executive officer Linnet Lee.
She noted, as at December 2017, there were only 2,680 CFPs with more needed in the years ahead.
There is increasing demand for the services of certified financial planners (CFP).
"We encourage more to take up the CFP certification programme to help strengthen their skills in need-based selling," she said.
"Every year, planners have to be re-certified with us to keep up with technological changes in the financial industry," Lee said, adding FPAM is an affiliate member of the international organisation, Financial Planning Standards Board Ltd.