KUALA LUMPUR: Despite the recent global market volatility, fund managers say focus on consumer spending, corporate earnings and stronger economic fundamentals when looking for local stock picks.
 
Areca Capital chief executive officer (CEO) Danny Wong said he expected higher consumer spending in the week prior to the Chinese New Year and election pump priming.
 
He said this would help boost consumer retail stocks, which include those dealing in apparel as well as food and beverage businesses.
 
Fund managers see construction and banking stocks as doing well this year – because of ongoing construction projects and upcoming ones and banking stocks usually seen as a proxy to economic growth.
 
Fortress Capital CEO and fund manager Thomas Yong said the rollout of large public infrastructure projects such as the MRT projects and the Malaysia-Singapore high-speed rail will benefit construction stocks.
 
The recent hike in the benchmark interest rate by Bank Negara is seen as benefiting banks
 
Eastspring Investments chief investment officer Rudie Chan believes stronger macroeconomic data will translate to better loans growth for banks in 2018.
 
Fund managers believe that the benchmark KLCI can sustain its performance this year compared to last year with a 10% gain.
 
Chan said earnings growth and a stronger ringgit will attract more foreign investors.