OSK-UOB Unit Trust Management says While it believes that the market is set to become more volatile, the benchmark index is still on the uptrend

OSK-UOB Unit Trust Management Bhd said the stock market's benchmark index could still rise by another 15 per cent this year, enhanced by government spending under its stimulus plan.

'The rise in KLCI has been relatively gradual. While we believe that market is set to become more volatile, KLCI is still on the uptrend,' said OSK-UOB Unit Trust Management chief executive officer Ho Seng Yee.

The FBM KLCI rose 45 per cent in 2009 as investors bet the economy would recover this year.

'Oil and gas sector should continue to see more robust activities as crude oil prices remain buoyant. Bank Negara Malaysia has kept interest rates low and this has resulted in resilient consumer spending.

'We expect domestic spending to continue contributing to our economy,' he told reporters after the launch of the OSK-UOB Asia Consumer Fund in Kuala Lumpur yesterday.

Yesterday, the KLCI traded 1.74 points higher to close at 1,308.36.

The OSK-UOB Asia Consumer Fund is offered at 50 sen per unit and the minimum take-up rate is RM1,000. The offer closes on February 7 2010.

'The fund is structured to achieve capital appreciation from investments in China and Hong Kong stocks whose businesses benefit from or are related to growth in consumer spending in Asia,' Ho said.