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Nomura cautious on local stock market on possible macro risks, regime change

August 10, 2018 6:55 AM
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KUALA LUMPUR: Nomura, which has set end-2018 FBM KLCI target at 1,830 points, remains neutral on Malaysia's stock market, citing that macro risks and regime change may weigh on the country's equity market performance this year.

However, its head of Malaysia Equity Research Tushar Mohata said at a media briefing today that possible upside would be premised upon the government's fast progression with its agenda, domestic investor base support that appears reasonably strong as well as rising current account surplus.

Additionally, Mohata said that stronger consumer confidence due to goods and services tax (GST) removal and associated perception of disinflation is also likely to benefit sectors including banking and transportation.

On the other hand, he said that business sentiment is expected to remain volatile as businesses are uncertain of likely policy changes by the government and its impact on them.


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