ICAPITAL.BIZ SEES FBM KLCI REACHING 1,500 LEVEL WITHIN TWO YEARS

KUALA LUMPUR, Aug 13 (Bernama) -- The FTSE Bursa Malaysia Kuala Lumpur
(FBM KLCI) is expected to increase between five and 10 percent from the current
level by year end, said icapital.biz Bhd (icapital), managing director, Tan Teng
Boo.
The FBM KLCI closed at 1,186.19 today, up 5.65 points from yesterday.
Tan is also projecting the FBM KLCI to reach 1,500 points within two
years depending on the economic development in the country as well as globally.
"As long as Malaysia does not face major political calamities, the
longer-term outlook for Bursa Malaysia remains positive," he told reporters
after the company's annual general meeting here today.
On the global economic outlook, Tan believed the global economy led by China
has begun a V-shaped recovery and the current rally the beginning of a new bull
market.
"The global economy is facing a secular boom with cyclical inflation."
He also believed the global economic contraction in the last three quarters
was not due to the U.S. sub prime or mortgage problems.
"Analysis showed that global economic activities contracted only
after the collapse of Lehman Brothers on September 15, 2009.
"In the last twelve months, the global economy impacted by the US-led
financial crisis, went through a very turbulent period, leaving investors
totally confused," he said.
Meanwhile, Malaysia's only listed close-end fund, icapital.biz recorded a
revenue of RM11.414 million for the period ended May 31, 2009, a fall of
RM34.252 million or 75 percent compared to the same period last year.
As of July this year, the company has invested in 17 listed companies
including Parkson Holdings, Astro, KL-Kepong Bhd, F&N Holdings Bhd and Petronas
Dagangan Bhd, topping the list in terms of the size of unrealised profits.
Its investments totalled RM156.99 million while total unrealised gain was
M60.80 million.
The conservative fund now has cash holdings of below RM40 million, which Tan
said was the lowest in the fund's history and a reflection of the many
bargains available on Bursa Malaysia.-- BERNAMA
WNA TNS SD