KUALA LUMPUR:AmInvestment Services Bhd said investors should enter the market now as analysts expect corporate earnings in Malaysia to
grow higher next year.
Senior Vice-President of Retail and Retirement Funds Ng Chze How said
corporate earnings were expected to grow by up to 7.0 per cent this year and 10 per cent in 2015.
"This is the right time to buy stocks as investors can buy low and sell high
next year," he told a media briefing here today on the outlook of the Asia Pacific Real Estate Investment Trust and Malaysian Equities Market.
For this year, most Asian markets excluding Japan are experiencing corporate earnings downgrade mainly due to external factors such as geopolitical tensions.
However, the regional market is seeing a consistent earnings upgrade for 2015 on better macro outlook and operating leverages.
Chief Investment Officer of Equity, Funds Management Division, Andrew Wong Yoke Leong said the company was comfortable with the anticipated 10 per cent growth for next year.
"Investors will be eyeing the Prime Minister Datuk Seri Najib Razak's Budget 2015 announcement as well as corporate results for the remaining year," he said.
Wong noted that corporate earnings growth could be higher than 10 per cent if Budget 2015 and corporate earnings announcements were positive.
On stock picks, he said one sector that AmInvest liked is technology,
specifically companies involved in manufacturing of light emitting diodes and softwares.
AmInvest, a member of AMMB Holdings Bhd, manages regional funds and nicheglobal funds for investors in the conventional and Shariah-compliant spaces. -- BERNAMA