INDEXFTSE:FBMKLCI : BIMB Research lowers KLCI target for 2014 to 1760
KUALA LUMPUR: BIMB Securities Research has lowered its FBM KLCI “fair valuation” target for 2014 to 1,760 from 1,830 before while its liquidity induced target at 1,800 from 1,900 previously.
The research house said on Wednesday that while it thought it had seen the worst in 2Q14, little did it realise that 3Q14 would be an extension to the disappointment.
“With the latest revision, our earnings forecast for 2014 is now a dismal -0.6% from 3.9% whilst consensus have their figure at -0.9% from 3.7% previously,” it said.
BIMB Research due to the lower figures, it decided to lower the KLCI “fair valuation” target.
“Judging from the recent sell-down on the market, we remain uncertain if any ‘liquidity induced’ buying would be sufficient to spur the KLCI higher as many may use such opportunity as window to lock in profits.
“As such we reckon any potential window dressing program may have to be on a back burner. Tracking the foreign funds flow, November saw another net outflow of RM307.5m pushing total net outflow to date at almost RM4bil,” it said.
BIMB Research said the Q3, 2014 was another uninspiring results season from corporate Malaysia as 40% of its universe came in below expectations.
“For the quarter under review, it was an across the board weakness that shook us as even some banks came in below expectations. As such, downgrades are again the order for the day as analysts further revised down their estimates to current level.
“Most notably, sectors that experienced hefty downgrades were Banking, Gaming, Telcos and the Petronas group of companies,” it said.
http://www.thestar.com.my
KUALA LUMPUR: BIMB Securities Research has lowered its FBM KLCI “fair valuation” target for 2014 to 1,760 from 1,830 before while its liquidity induced target at 1,800 from 1,900 previously.
The research house said on Wednesday that while it thought it had seen the worst in 2Q14, little did it realise that 3Q14 would be an extension to the disappointment.
“With the latest revision, our earnings forecast for 2014 is now a dismal -0.6% from 3.9% whilst consensus have their figure at -0.9% from 3.7% previously,” it said.
BIMB Research due to the lower figures, it decided to lower the KLCI “fair valuation” target.
“Judging from the recent sell-down on the market, we remain uncertain if any ‘liquidity induced’ buying would be sufficient to spur the KLCI higher as many may use such opportunity as window to lock in profits.
“As such we reckon any potential window dressing program may have to be on a back burner. Tracking the foreign funds flow, November saw another net outflow of RM307.5m pushing total net outflow to date at almost RM4bil,” it said.
BIMB Research said the Q3, 2014 was another uninspiring results season from corporate Malaysia as 40% of its universe came in below expectations.
“For the quarter under review, it was an across the board weakness that shook us as even some banks came in below expectations. As such, downgrades are again the order for the day as analysts further revised down their estimates to current level.
“Most notably, sectors that experienced hefty downgrades were Banking, Gaming, Telcos and the Petronas group of companies,” it said.
http://www.thestar.com.my
