KUALA LUMPUR (April 18): RHB Bank Bhd is positive that the FBM KLCI can weather the index's current slide and volatility issues.

Speaking at a press conference at the launch of its new mobile banking application on the index's performance, RHB group managing director Datuk Khairussaleh Ramli said the current state of volatility plaguing the index is temporary.

"We have a positive outlook on the index. Of course at the moment there is a lot of volatility in the market place, primarily caused by the external environment," he said.

He said the banking group's investment banking arm still covers a wide variety of counters, and would advise investors to invest in stocks that are worth investing in.

This comes as the FBM KLCI index closed 8.56 points or 0.53% lower at 1,620.90 points yesterday, and opened this morning with a fall of 5.09 points or 0.32% to 1,615.81 points at 9:10am this morning.

When asked if the banking group was concerned that it would follow the likes of Malayan Banking Bhd (Maybank), Public Bank Bhd and CIMB Group Holdings Bhd in terms of being on the watchlist for the World Government Bond Index, Khairussaleh responded by saying the Malaysian bond is deep and its fundamentals are sound.

"If we look at our own fundamentals in Malaysia, our foreign exchange (forex) reserves are strong, the current account is still in surplus and the oil price has been well supported and inflation is very low," added Khairussaleh.

He added that as it stands, he is not too worried about the speculation over the government bond index.