KUALA LUMPUR (Dec 2): CIMB IB Research said 3Q15 corporate results were not as bad as it had feared, with the revision ratio improving from 0.47x in Aug to 0.63x in Nov, the highest since 3Q13.
In a strategy note yesterday, the research house however lowered 2015 EPS growth from 1.4% contraction to a steeper 3.6% contraction. 2016 EPS growth is also lowered from 8.8% to 7.5%.
CIMB Research maintained its FBM KLCI target of 1,700 points for end-2015 and 1,850 points for end-2016.
“We expect 2016 to be a year of recovery for the stock market.
“We continue to like the construction, utilities and smaller-cap sectors,” it said.