Public IB Research lowers end-2016 KLCI target to 1,720

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KUALA LUMPUR (June 2): Public IB Research has lowered its end-2016 target for the FBM KLCI to 1,720 points (from 1,800 previously) and said the oil and gas sector continued to hog the limelight in terms of earnings misses house and consensus alike, but were surprisingly joined by the plantations and gaming sectors this time round.

In a stratregy note today, the research house said while the market had generally anticipated a turnaround in sight post the previous quarter’s reporting, conditions have taken a slight turn for the worse as market and economic volatilities took a greater bite off companies’ performances than anticipated.

“Our year-end target for 2016 is lowered to 1,720 points (1,800 previously) on an unchanged bottom-up approach, the reduction a result of widespread earnings adjustments in the index-heavy plantations (more pronounced) and telecommunications (less severe) sectors,” it said.