KUALA LUMPUR (Dec 18): Affin Hwang Capital Research said it remains Positive on the FBM KLCI and said it believes that there is further room for global equity markets to rally.
In a strategy note today, the research house said the FBM KLCI, which has lagged behind, should finally play catch up.
It said low foreign ownership in the equity market, a still undervalued Ringgit, the return of corporate earnings growth and attractive valuations form the basis of our thesis for stronger returns on the FBM KLCI in 2018.
“Improving consumer and business sentiment and a pre-election rally could also aid performance of the FBM KLCI.
“We roll out our end-2018 index target of 1,854, based on a past-5-year mean PER of 17x applied to our 2018E earnings,” it said.