'Opportune time to accumulate quality stocks'
KUALA LUMPUR: AmInvestment Bank Bhd has a cautiously optimistic view on market outlook, citing stable fundamentals but acknowledged ongoing headwinds that suppress market sentiment.
'Deals are in the pipeline, but the problem is uncertainty,' the bank's newly-appointed chief executive officer Christopher Ng Kok Wai told StarBiz at the launching of the AmEquities trading platform and media briefing here, yesterday.
Many investment opportunities are available but companies are not able to continue without improved market clarity, he added.
According to Ng, three conditions are needed to revive market activity namely a strong economic impetus, US interest rate cuts and clarity on tariffs as well as global trade.
'Fund managers are still holding elevated levels of cash relative to pre-Covid-19 norms. Once a catalyst emerges, we expect those funds to be deployed,' he noted.
He said last year's positive market performance was supported by the strengthening ringgit, strong inflows into the data centre segment and political stability.
Ng described the current market environment as being on 'auto cruise', where it is steady but lacks momentum.
'It's not bad, but it's not good either. We need an impetus,' he said, adding that global uncertainties, particularly around tariffs and the US rate cycle, continued to weigh on sentiment.
While the broader market outlook remained mixed, Ng said fundamentals remained sound.
'From a domestic standpoint, consumption is still strong,' he said.
He stated that crude oil prices of between US$70 and US$80 per barrel would be sufficient for the oil and gas sector to remain viable.
'The industry isn't asking for a boom, just stability,' he added.
On the retail front, Ng acknowledged that most investors had remained cautious and on the sidelines.
'Retail investors are understandably hesitant, especially with the external environment. But there are still opportunities,' he said.
With the FBM KLCI trading below its historical average, it could be an opportune time to accumulate quality stocks.
'It may not feel like the perfect time, but valuations are reasonable. Caution is warranted, but not paralysis.
'We are cautiously optimistic. As a focused, Malaysian-centric player, we see this market environment as a window to create opportunities, even when sentiment is soft,' he added.
The AmEquities trading platform is offering a host of advanced features including customisable dashboards, access to live market data in real time with multilingual support.
It aims to provide investors with a seamless and informed trading experience, reflecting the bank's commitment to innovation amid a challenging market environment.
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