PNB expects strategic companies to exceed KLCI index this year

by ALIFAH ZAINUDDIN / pic by TMR file

PERMODALAN Nasional Bhd (PNB) expects its 10 key stocks to grow faster than the Bursa Malaysia KLCI Index this year.

Chairman Tan Sri Abdul Wahid Omar (picture) said the state investment arm’s strategic companies including Malayan Banking Bhd, Sime Darby Bhd and SP Setia Bhd, have posted a higher growth last year, and they are expected to continue the momentum this year.

“The consensus earnings for the local exchange in 2017 was about 7% and the forecast remains at 7% this year. 

“The KLCI component stocks have so far performed better than that. For PNB, we would certainly like to see our strategic companies to deliver a much higher percentage than 7%,” Abdul Wahid said at the Malaysia Leadership Succession Summit in Kuala Lumpur this morning.

Abdul Wahid said the recent dip in the the index was due to external factors, and did not reflect any fundamental shifts of the local market.

“We don’t have to look at day-to-day fluctuations. As long as Malaysian corporates continue to improve their earnings and pay better dividends, the share price will pick up,” he said.

At noon, the index traded 2.7% lower at 1803.03 points from yesterday’s close of 1,853.07 points, impacted by the massive selloff in the US stock market.