KUALA LUMPUR (April 6): BIMB Securities Research is targeting 1,850 points for the FBM KLCI in 2015, premised on 16.5 times PE.

In its monthly strategy note today, BIMB Securities said whilst the global financial markets were still waiting for the Feds decisive move on its rates, the local market was at the moment sailing on choppy waters.

The research house said volatility had taken reign over prevailing market directions whereby the global financial markets are now playgrounds for traders.

“Amid such confusion, we saw foreign funds returning to Asia as most have had all charted positive performances vindicating our earlier expectations and we expect it to continue especially now that China had also jumped into the QE bandwagon.

“Back home, we remain adamant that foreign funds will return. Although year-to-date (YTD) there is still a net foreign outflow from the local bourse totalling to almost RM3.7 billion, it is the manner of inflow during the final week of March 2015 whereby foreign fund inflows had been quite evident at RM1.1 billion,” it said.

BIMB Securities said corporate earnings for Malaysia had been disappointing over the past years to say the least but consensus had also rather viciously slashed their expectations hence rendering it easier to manage expectations going forward.

“For 2015 we have our earnings growth at 6.7% with our FBM KLCI tagged at 1,850 premised on 16.5x PE.

“Buy on weakness remains the preferred mode as we continue to see pockets of buying opportunities,” it said.