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.
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Retail investors are seen to be the main investor class to support the Malaysian equity market, opined Rakuten Trade Research. In Rakuten’s first quarter of 2021 (1Q21) outlook virtual session today, Rakuten Trade Research head of research Kenny Yee stated that retail investor inflows into the local market have been consistent so far in the first two months this year.
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