FBM KLCI to remain volatile in 2019, says CIMB Research

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KUALA LUMPUR (May 6): CIMB IB Research has its FBM KLCI end-2019 target at 1,638 points and said the FBM KLCI fell 0.1% month-on-month (m-o-m) in April and 2.9% in 4M19 to close at 1,642 points due to concerns over potential weakness in ringgit and slower global growth.

In a monthly strategy note May 3, the research house said that in April, the FBM KLCI underperformed the broader and small cap markets.

It said based on past performance, the market tends to be mixed in May, posting m-o-m loss over the past 10 years but a positive return over a 40-year period.

“We expect the FBM KLCI to remain volatile in 2019 due to earnings risks, policy uncertainties and external risks.

“Our end-2019 KLCI target is 1,638 points.

"We have added Supermax Corp Bhd to our top three picks, joining Malaysian Pacific Industries and Dialog Group Bhd. We have also removed Digi.Com Bhd from our top picks list, following recent downgrade in the stock’s rating to Hold," it said.