KUALA LUMPUR, Nov 9 — Kenanga Investment Bank Bhd expects the benchmark FTSE Bursa Malaysia KLCI (FBM KLCI) to trade between the 1,785 and 1,795 levels next year. This depended on the decision of the US Federal Reserve on raising interest rates, it said.

Director and head of dealing, equity broking, Chan Tuck Kiong, said the overall local market sentiment was considerably good, but both the global economy and the US interest rate direction would still have an influence.

“We saw a sharp drop after the first quarter this year when retailers pulled out and are seeing a comeback. Hopefully, the momentum would grow.

“If you notice, all the stocks being heavily traded, are penny stocks and lower liners. They are all retail stocks,” he added.

Chan told reporters this after the prize-giving ceremony for the KenTrade Trading Challenge 2 here today.

As for institutional and foreign investments, he said there would undeniably be a pullout, but not totally, as there are limitations to this.

“Today’s markets are drawn by perception. The catalyst for the foreign funds to return is results, earnings and economics.

“Next year, we expect to be looking into a few dark horses like the retail sector to turn around, oil and gas and maybe, the plantation sector to perform better,” Chan added.

The KenTrade Trading Challenge 2 is designed to simulate real-life trading based on real-time market data, in an effort to continuously create awareness and education on share trading and the market.

The challenge this year attracted more than 18,000 entries, with participants aged 18 to 70. Last year there were 12,000 entries.

Twenty per cent of the participants were students.

Student Sim Yu Chin, 19, won the grand prize of a Volkwagen Beetle 1.2 TSI worth RM135,888 sponsored by Volkswagen Malaysia. — Bernama