Research house HwangDBS Vickers Research expects the stock market to maintain its winning streak on robust recovery in the Malaysian economy and strong ringgit- "We expect 2011 earnings to be 35 per cent higher than before the financial crisis although the Kuala Lumpur Composite Index (KLCI) has just breached pre-crisis levels," its executive director and head of research Wong Ming Tek said- The market is currently trading at 13 times forward earnings, Wong said, adding that the KLCI should rise 10 per cent to 1,730 points by the year-end- He was speaking at a media briefing on Bursa Malaysia's 2011 outlook in Kuala Lumpur yesterday- Also present at the briefing were HwangDBS's senior analysts Lim Sue Lin and Chong Tjen-San- HwangDBS's sector focus for the year are construction, banking, oil and gas, property and plantation-The research firm is optimistic that the stock market will continue to thrive on liquidity, stronger commodity prices, stronger ringgit, more construction project awards and foreign investments- Wong said the government must continue to introduce fiscal incentives to attract more investments, remove unnecessary regulations and enhance the ease of doing business- On the banking front, Lim said banks with established sources of non-interest income offer better return-on-equity prospects in a tighter net interest margin environment- Chong, meanwhile, said the government's plan for the Greater Kuala Lumpur mass rapid transport system will unleash a flood of opportunities for Gamuda Bhd, IJM Corp Bhd and WCT Bhd- He also said there is growing optimism in the economy with projects such as toll highways and the redevelopment of strategically-located government land- He named Boustead Holdings Bhd and DRB-HICOM Bhd among his top picks- ...

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