THE stock market looks likely to heat up in the second half of the year, CIMB Research said yesterday, adding that the benchmark FTSE Bursa Malaysia KLCI (FBM KLCI) is set to break the 2,000-point barrier this year.
With this in mind, the research house is urging investors to invest in stocks closely linked to the Economic Transformation Programme (ETP).
CIMB's 2014 target for the FBM KLCI index is 2030 points, with the oil and gas, construction and property providing the impetus for index to move up.
The research firm's top three picks for this year are SapuraKencana Petroleum for oil and gas, Gamuda for construction and Mah Sing for property.
Its picks for smaller caps are Karex, Signature International and Tune Insurance besides Barakah, Engtex and Matrix Concepts.
In its note , released yesterday summarising CIMB's sixth Annual Malaysia Corporate Day n Wednesday, consensus was that the CIMB analysts' views were similar to Lillian Too.
The feng shui guru expects the market to peak in the beginning of the second half , before giving up most of its gains towards the year-end.
Meanwhile, Moody's vice-president and senior analyst Christian de Guzman said that its next rating review on Malaysia is between 12 and 18 months away.
Moody's will view it negatively if the government defers the implementation of the Goods and Services Tax.
On the property market outlook, Jones Lang Wooton (JLW) executive director Malathi Thevendra said it is more optimistic about the market in Penang compared with Johor, which it believes will undergo some adjustments this year.