"Post revisions, our estimates are now getting closer to the consensus estimates of 5.7%/7.3%. "Post-results season, the research firm has pegged its end-2018 index target at 1,950 from 1,860 in the previous quarter.However, potential inflow of foreign capital could be capped due to valuations of FBM KLCI. "Forward PER of FBMKLCI is still traded at a relatively higher level vis-à-vis regional peers post recent corrections in global and regional markets. Forward PER valuation of FBMKLCI is back to ~15% premium against regional peers, which may not be as attractive by historical standard. "Going by sector, Kenanga Research has maintained its sector ratings except for an upgrade in the construction sector and a downgrade in gloves and plastics packaging sectors.

Source: The Star April 03, 2018 06:56 UTC