KUALA LUMPUR, 13 January 2020 – Kenanga Investors Bhd is optimistic that Bursa Malaysia FBM KLCI index has high potential to recover this year based on the nation’s gross domestic product (GDP) outlook and corporate earnings recovery.
“We are not bearish this year. After two years of seeing funds flow out of the country, Malaysia (stocks) has potential to surprise on the upside based on stable GDP outlook and supported by recovery in corporate earnings,” said Chief Investment Officer of Kenanga Investors Bhd, Lee Sook Yee.
Lee also said that continuous reform and divestment of non-core investment in government-linked companies (GLCs) could see further unlocking of the stocks’ value. More than half of the top 30 companies in the KLCI are GLCs.
She also expects commodities and Petronas-related counters to perform better than average as crude palm oil prices have rebounded and is now on slow production period, while Petronas outlook remains bright.
“Over the years, the market had been volatile and GLC reform will push the share price up as liquidity of the counter increases,” Lee told reporters after the listing of the Kenanga KLCI Daily 2X Leveraged ETF (KLCI2XL) and Kenanga KLCI Daily (-1x) Inverse ETF (KLCI1XI) on Bursa’s Main Market.
Earlier, Kenanga Investors Berhad, a subsidiary of Kenanga Investment Bank Berhad has announced the listing of OneETF on the Main Market of Bursa Malaysia Securities Berhad.
Kenanga Investment Bank Berhad’s Group Managing Director, Datuk Chay Wai Leong said the Kenanga KLCI Daily 2X Leveraged ETF (KLCI2XL) and the Kenanga KLCI Daily (-1X) Inverse ETF (KLCI1XI) are the first L&l ETFs to be benchmarked against the FTSE Bursa KLCI (KLCI) and the first ETF listing of the new decade on the local bourse.
Both KLCI2XL and KLCI1XI adopt a futures-based replication investment strategy to provide daily performance that closely corresponds to their respective tracked indexes.