KUALA LUMPUR (May 28): The heavy selling pressure that Bursa Malaysia witnessed in the last week is "nothing to be worried about" and is a signal of a period of consolidation for the local equity market, said UOB Asset Management chief executive Lim Suet Ling.

Lim said the FBM KLCI could fall to the 1,700-point level in the first half of the year before rebounding, when corporate earnings catch up to valuations, global oil price stabilises and consumer sentiment recovers.

"We expect the second half of 2015 to look better for the equity market and corporate earnings," Lim told reporters during a media round table here today.

At current valuations, Lim said Malaysian equities are generally fairly valued but not yet a bargain.

However, she said investors can still look for a good bargain among second-liner stocks, which has strong earnings growth potential, adding that she favour construction and technology stocks.

"Malaysia has traditionally been very defensive, so it is not as volatile as other markets. It is also one of the markets which offer good dividend yield and that attracts investors," said Lim.