Nothing better than a little New Year optimism: analysts are predicting a hot year for Bursa Malaysia, with some predicting the KCLI composite index could beat November 2010′s 1,528.01 point record and reach 1,700 at some stage in 2011.

Spokespeople from different companies gave their outlooks in this Business Times article. Lee Cheng Hooi of Maybank Investment Bank Bhd said the KLCI could reach 1,553 points in the first quarter alone, with plantations and oil/gas leading the charge. Terence Wong of CIMB Research has even higher expectations, with his company rating Malaysia as ‘overweight’ and revising its end of year target from 1,610 to 1,700 points. CIMB has its eyes on the property sector, picking SP Setia Bhd with its various eco-developments as top property stock and identifying Eastern & Oriental Bhd as a potential takeover target.

Edmund Tham of Mercury Securities like small caps including fire fighting company Fitters Diversified Bhd and cocoa producer Guan Chong Bhd. He predicts the market will rise 5% from its current level in the first three months of 2011 with the banking and construction sectors performing well. Alan Voon of Warrants Capital Sdn Bhd also favors the development and real estate industry this year, saying retail investors will show an interest in speculation and warrants, choosing companies such as fabricators Jotech Holdings Bhd as attractive with its upcoming activity in plantations and the Indonesian resources sector.

source & article: Business Times