KUALA LUMPUR: Dialog Bhd said it remains optimistic of its positive performance in the current financial year while acknowledging the challenging economic environment in the short- to medium-term.
KUALA LUMPUR (Feb 22): Rakuten Trade Research is targeting the FBM KLCI to reach 1,870 points in 2021. At 11.33am today, the FBM KLCI was down 1.72 points to 1,583.21.
In its market outlook for the first quarter of 2021 (1Q21) briefing today, Rakuten Trade Research head of research Kenny Yee stated that this target for 2021 is based on a 15.5 times calendar year 2021 (CY21) price-to-earnings (PE) ratio, driven by solid earnings growth as well as prevailing alluring market valuations.
Earlier during his presentation, Yee said the research house had raised its corporate earnings recovery estimates for 2021 to 38.7%, from 35.3% previously.
“For 2021 everyone is expecting solid earnings growth from our corporates, especially among our KLCI constituents,” he noted.
THE gradual rise in oil prices has boosted the share prices of oil & gas (O&G) stocks of late as the market looks forward to the recovery theme. Notably, since early November, the FBM Energy Index has risen 45%.
Most O&G stocks delivered positive returns during this period, except for Dialog Bhd (-3.5%), Favelle Favco Bhd (-3.9%) and Ocean Vantage Holdings Bhd (-2%). Refiners such as Hengyuan Refinery Company Bhd and Petron Malaysia Refining & Marketing Bhd were among the top gainers, surging 144.9% and 96.7% respectively.
That said, analysts are of the view that the upside for O&G stocks is limited at this juncture, unless the oil prices climb further.