KUALA LUMPUR (Nov 6): AffinHwang Capital Research has upgraded its 2016 FBM KLCI outlook to “Overweight” with a year-end target of 1,793 points.
In a strategy note today,the research house said that over the past 12 months, Malaysia has navigated strong macro headwinds in an orderly and resilient manner.
It said the adjustment to the new reality was still ongoing but as long as major macro parameters do not deteriorate further, it believed that Malaysia is looking attractive as we step into 2016.
“International agencies (IMF, EIA, USDA, Fed) are corroborative in their views of global growth for 2016.
“Domestic macro conditions are also supportive. Taken together, we believe conditions are conducive for EPS rebounding in 2016.
“Valuation at 16.5x 2016E looks attractive too. Thus, we turn cautiously optimistic on Malaysia and upgrade our 2016 outlook to Overweight,” it said.