The FTSE Bursa Malaysia KLCI (FBM KLCI) will rise a further 13 per cent to 1,700 by year-end, sparked by a series of merger and acquisitions (MandA) activities in the consumer and property sectors, says Nomura Securities Malaysia Sdn Bhd.

We believe 2011 will be another good year for the Malaysian market after surging over 30 per cent last year, it added.

The buoyant stock market in 2010 is likely to be sustained into 2011, Nomura said in its ASEAN Equity Strategy Outlook Report for 2011 here today.

According to Nomura, the increase in MandA activities for the past few weeks in the property, construction and consumer sectors, is creating more excitement and momentum for the market, Nomura added.

We continue to be bullish on residential property on the unlocking of latent demand from an incrementally higher income earning population, favourable demographics and positive government policies, it said.

Commenting on the banking segment, Nomura said it believed, fairly robust economic conditions would continue to underpin loan growth for 2011.

We expect both consumer and capital markets to drive top-line growth, it highlighted.

Nomura sees the plantation sector as being bullish on its higher crude palm oil (CPO) price assumptions.

We think tighter supply and demand fundamentals for the vegetable oil complex, higher crude oil prices and increased flows into the commodities space, provide support for higher CPO prices and our more positive view on the plantations sector, the securities company said.

Among the stocks it believed, will be prime beneficiaries of the consumption boom in Malaysia, are Maybank, AMMB, Media Prima, SP Setia and Genting Malaysia. -- Bernama