Kuala lumpur: Maybank Investment Bank Bhd forecasts that the FTSE Bursa Malaysia KLCI (FBM KLCI) could attain the 1,700 mark by the end of the year, contingent on favorable price movements within the banking sector and specific counters. The investment bank emphasizes that improvements in the share prices of Tenaga Nasional Bhd (TNB), Gamuda Bhd, IHH Healthcare Bhd, and Press Metal Aluminium Holdings Bhd are essential for this target.

According to BERNAMA News Agency, the FBM KLCI index has been fluctuating between 1,610 and 1,630 in recent weeks, with renewed interest in large-cap stocks primarily from local institutions. A significant factor in the potential rise of the FBM KLCI is the recovery of bank share prices, which have underperformed year-to-date. Given that banks account for approximately 30 percent of the index’s weight, their price uplift is deemed critical.

Maybank Investment Bank further highlights that a collective five percent increase in the share prices of the top three banks could elevate the FBM KLCI by 25 points. Additionally, TNB is identified as a laggard, with investor concerns over its financial impact from tax issues continuing to weigh heavily.

The bank maintains a year-end FBM KLCI target of 1,660, estimating a four percent rise to reach 1,700. It has also revised its top picks by adding Press Metal Aluminium and Nestle, replacing KPJ Healthcare and Farm Fresh Bhd.

The Malaysian market remains a net foreign sell on a year-to-date basis, with a marginal net outflow in November. Genting Malaysia Bhd, SD Guthrie Bhd, and Maybank are noted as top net buys, while TNB, YTL Power International Bhd, and Maxis Bhd are identified as top net sells. As of 9.06 am, the FBM KLCI increased by 2.91 points to 1,620.48, compared to Friday’s close of 1,617.57.