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.
Investors should be cautious and vigilant when it comes to pursuing growth stocks such as technology counters. Rakuten Trade Research head of Research Kenny Yee viewed that the rotational play (i.e cyclical counters) is still ongoing in the market.
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.
The tech stock rally yesterday, fuelled by anticipation of higher demand for tech products amid fresh global lockdowns that saw certain counters hit limit-up, faltered today as investors took their feet off the pedal to take in profit, according to market observers.
KUALA LUMPUR (Dec 28): The FBM KLCI today closed 2.73 points or 0.17% higher after the extended Christmas weekend, following the release of the country s better-than-expected November export figures. At 5pm, the local benchmark index closed at 1,643.9 points.
Besides the November export figure which rose for the third straight month and was up 4.3% year-on-year progress on the US fiscal stimulus aid also lifted the benchmark index, according to Rakuten Trade Research vice president Vincent Lau.
Reuters reported that US President Donald Trump signed a US$2.3 trillion financial aid and spending bill after initially refusing to approve the legislation, which restores unemployment benefits to millions and averts a partial federal government shutdown.