BIMB Securities lowers end-2014 KLCI target to 1,760

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KUALA LUMPUR (Dec 3): BIMB Securities Research has lowered its end-2014 target for the FBM KLCI to 1,760 from 1,830 previously and said while it opined to have seen the worst in 2Q14, 3Q14 appreared be an extension to the disappointment.

In his strategy report today, BIMB’s Kenny Yee said that with the latest revision, his earnings forecast for 2014 was now a dismal -0.6% from 3.9% whilst consensus have their figure at -0.9% from 3.7% previously.

“In tandem with the lower figures, we have also lowered our FBMKLCI “fair valuation” target for 2014 to 1,760 from 1,830 before and our liquidity induced target at 1,800 from 1,900 previously,” he said.  

Yee said that judging from the recent sell-down on the market, he remained uncertain if any “liquidity induced” buying would be sufficient to spur the FBM 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 RM307.5 million pushing total net outflow todate at almost RM4 billion,” he said.