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.
FBM KLCI expected to climb to 1,870-level in 2021 thestar.com.my - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from thestar.com.my Daily Mail and Mail on Sunday newspapers.
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.
Glove makers, whose share price tumbled at least 30% from their record highs, were seeing some bargain hunting today due to hope for sustainable high demand amid rising Covid-19 cases, according to a head of research and a fund manager The Edge contacted this morning.
ALTHOUGH the recovery theme has been the focus of investors in the weeks closing out 2020 and entering 2021, analysts caution that it is not a broad-based nor clear-cut theme because there are still many uncertainties ahead, even though vaccines for Covid-19 are now available.
Be selective and study the stocks, as not all in the recommended sectors will deliver, cautions Areca Capital CEO Danny Wong, following a 34-point slump in the KLCI in the new year on the back of profit-taking focused on glove makers and banking counters before losses were slightly pared and the benchmark closed at the 1,602 level.
“This first week of the year has been a guide for us. Those who want to participate in the market can tell that 1H2021 should be better than last year on account of positive vaccine news, better business sentiment and the notion that most businesses will see recovery in earnings over the next two quarters,” Wong tells The Edge, noting that longer-term investments with a two- to