Friday 29 Mar 2024
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KUALA LUMPUR (Feb 12): BIMB Securities Research has lowered its 2016 FBM KLCI target to 1,790 (from 1,820) and said it was indeed an inauspicious start for the local bourse in 2016.

In a note today, the research house said the massive sell-off in Chinese stocks erased any hopes for a strong opening for the year.

“In fact, for January the Shanghai Index lost a massive 22.6% that reverberated across the region.

“The scenario was further clouded by the trashing of crude prices that touched a low of US$26.39 before recovering back to above the US$30 levels,” it said.

BIMB Securities said due to this, Malaysia also witnessed a recalibrated Budget 2016 where the most telling feature is the auctioning of spectrum to telco players thus adding to the players’ woes and government’s coffers.

“As a result, we have revised our 2016 earnings estimates lower to 5.3% from 6.7% placing our FBM KLCI target for 2016 at 1,790 versus 1,820 previously premised on a market PE of 16.5x,” it said.

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