A resilient US economy and expectations of rate cuts by its Federal Reserve (Fed), China’s gradual economic recovery, plus the implementation of fiscal reforms locally, will continue to drive sentiment of the local equity market.
Fund managers believe that the local equity market is set for some tightening over the coming months, despite the indirect good news that Malaysia had posted a 15.3% year-on-year growth in foreign investments last year.
Sentiment and valuation could be key for the local equity market to head higher after the FBM KLCI closed at a 19-month high on the maiden trading day to usher in the Lunar New Year of the dragon.
Gong Xi Fa Cai! Xin Nian Kuai Le! Today is the first day of the Lunar New Year under the fifth animal zodiac, the Dragon. This year is the 4,722nd year under the Chinese calendar and the year is a Yang year.
The Employees Provident Fund (EPF) is positioned for favourable returns this year as improving global market sentiment gains momentum and with the resolution of political uncertainties locally.