PETALING JAYA (Dec 12): The FBM KLCI is expected to rise some 100 points from just over 1,660 points currently to reach 1,780 points by the end of this year, according to Rakuten Trade.

As a traditionally defensive market compared to its regional peers, Malaysia is better poised to attract foreign funds that may return to the region this year, Rakuten Trade head of research Kenny Yee said at a market outlook briefing today.

"We expect foreign funds to return to take advantage of the lower ringgit and to position (their portfolios) ahead of the new year," he said.

Despite the volatility seen in markets throughout 2018, Yee expects to see more disciplined movements from market players and less severe effects going into 2019.

In the local market, he opined that index-linked blue chip stocks could be ripe for the picking after having been battered down this year.

"We're still expecting the banking sector to be the main catalyst for earnings growth," he said, referring to the research house's 4.6% earnings growth forecast for KLCI constituents.