Can Bursa Malaysia reach its 2024 target of 1,660?

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Bursa Malaysia's 2024 Target of 1,660 is Achievable

Rakuten Trade Sdn Bhd equity research vice-president Thong Pak Leng believes that Bursa Malaysia's 2024 target of 1,660 for the FBM KLCI is readily attainable. This projection is supported by the current upward momentum in the market, the re-entry of foreign investment, and consistent purchasing of blue-chip stocks.
Prevailing Uptrend and Foreign Fund Inflows

The FBM KLCI has demonstrated a robust performance since mid-April, achieving a four per cent increase. This positive trajectory is significantly bolstered by the return of foreign funds to the local bourse, indicating renewed investor confidence. The sustained buying activity in blue-chip counters further reinforces the market's strength and its potential to reach higher levels.
Market Conditions and Reasonable Valuation

Thong Pak Leng highlighted that the prevailing uptrend, coupled with the continued buying interest in large-cap stocks, makes the 1,660 target for 2024 appear easily achievable. The assessment is also influenced by the fact that the local stock market is considered reasonably priced, which is an attractive factor for both domestic and international investors.
Wall Street's Influence and Rate Cut Hopes

The optimism surrounding Bursa Malaysia's performance is partly linked to the strong showing on Wall Street. The US stock market has maintained its upward trend, fueled by expectations that the Federal Reserve may implement interest rate cuts sooner rather than later. This global market sentiment often translates into positive spillover effects for other major exchanges, including Bursa Malaysia.

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Can Bursa Malaysia reach its 2024 target of 1,660?

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