KUALA LUMPUR: There could be limited upside for the FBM KLCI although the bias remains to the upside, said HSBC Private Banking’s chief market strategist, Southeast Asia James Cheo.

“We are cautious on Malaysian listed companies’ earning growth which we are expecting earnings per share to grow in the single digits. And this may cap the upside potential,” he said at a press briefing earlier today.

For stocks in Malaysia, HSBC favoured those with exposures to the domestic consumer and infrastructure stocks as well.

Cheo also expects private investments to pick up in the later part of the year led by the revival of the east coast rail link. 

This would help give a decent boost to the local economy, he said.