KUALA LUMPUR (Aug 10): The FBM KLCI may run up to 1,830 points by the end of this year, supported more by an expectation of stronger dividend payouts rather than broad-based earnings growth, according to Nomura.

Despite relatively high valuations, the market may follow themes such as higher dividend payouts by government-linked companies (GLCs), which would support the government's quest for high revenue, shared Tushar Mohata, head of equity research at Nomura Malaysia.

Strong consumer confidence is also likely to be a key theme supporting sectoral plays such as banks and consumer stocks.

However, while this may support earnings growth in several KLCI component stocks, other sectors such as telcos and utilities may continue to disappoint in terms of earnings growth, Mohata said.

"Funds seem to be flowing back into Malaysia based on the theme that Asean is seen as a beneficiary or safe haven with regards to the trade war," he said.