Malaysian market to remain volatile till 1H15, says AffinHwang Capital

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KUALA LUMPUR (Dec 22): The Malaysian market is expected to remain volatile till 1H15, with prospects of a recovery in 2H15, according to AffinHwang Capital Research.

In a stragety note Monday, the research house said that with the recent correction, the FBM KLCI was now trading at 4% discount to the average Thailand, Indonesia and Philippines (TIP) markets versus an average historical premium of 10%.

“Our end-2015 KLCI target has been revised down to 1,820, following a recent earnings downgrade and applying a lower 15x PE.

“We retain our Overweight stance on the construction and infrastructure, rubber gloves and utilities sectors,” it said.