KUALA LUMPUR (Jan 21): AffinHwang Capital Research has maintained its “Overweight” rating on the FBM KLCI and retained its forecasts and end-2015 target of 1,820 points for the local index.

In a note Wednesday, the research house said that in announcing amendments to Malaysia’s Budget 2015, the Prime Minister said he believed Malaysia was not in a crisis.

“The economy should remain healthy, with 2015E GDP growth of 4.5-5.5%, a current account surplus, and an improved 2015E fiscal deficit of 3.2% of GDP versus 2014E.

“The cut in the 2015 oil price assumption should be mitigated by lower operating expenses, although development expenditures are unchanged.

“We retain our forecasts and end-15 KLCI target of 1,820,” it said.