The FTSE Bursa Malaysia KL Composite Index is expected to hit 1,550-level next year, says Maybank Investment Bank Bhd, citing positive domestic demand.

Its Executive Vice President, Head of Research, Equity Market, Andrew Lee said by year-end, the key index would likely hover between the 1,450 and 1,500 points level.

'The government had done a good job to stimulate domestic demand and attract foreign investments into the country.'

For the past two to three months, the market has seen better foreign inflows in the market, he said.

Turning to the ringgit, he said the local unit would likely strengthen at the current level of 3.10-3.15 against the US dollar by end of this year.

'Next year, the local currency will be stronger between 3.00-3.05 level against the U.S dollar,' he told reporters here today.

The country would also likely see another round of interest rate hike in November this year, Lee added. - Bernama