Wahid:
KUALA LUMPUR: Despite the recent selldown in the local stock market, the market is expected to continue to grow supported by corporate earnings and strong economic fundamentals, said PNB group chairman Tan Sri Wahid Omar.
He pointed out that the recent drop in the local stock market was triggered by major selloff on Wall Street since last Friday.
“As long as Malaysian economy continues to improve and corporate earning continue to grow as well as dishing out good dividend, we expect the stock market to rebound,” he said.
Wahid was speaking to reporters at The Malaysia Leadership Succession Summit on Tuesday.
Stock markets globally staged a pullback from a prolonged rally after sentiment on Wall Street soured since last Friday.
Along with the rest of the region, Bursa Malaysia took its cue from the Dow Jones drop to stage a selldown.
The local bourse benchmark index FBM KLCI extended its losses by 50 points before the afternoon break following a 1,100 points declined in the Dow Jones industrial average.
On Monday, the FBM KLCI opened morning by falling 25 points upon the opening bell.
Wahid expected that the Malaysian corporate earnings to grow more than 7%, which is in line with the consensus estimate.
“We hope that the corporate earnings to deliver more than 7% this year, especially among out strategic investment companies,” he said.
The companies under this category are the likes of Malayan Banking Bhd
, Sime Darby Bhd, UMW Holdings Bhd, Chemical Company of Malaysia.
PNB, which is the country’s largest fund management company, has RM270bil asset under management (AUM).
Almost RM200bil of its AUM in local stock market, which made up more than 10% of the FBM KLCI market capitalisation.
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