MIDF Research lowers end-2015 KLCI target to 1,900 points

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KUALA LUMPUR (Jan 8): MIDF Research has revised its end-2105 target for the FBM KLCI to 1,900 points from 1,970 points and said it was cautiously optimistic as its relative optimism on the local equity market was premised on a key assumption whereby crude oil price would rebound to a target average of circa US$75 per barrel.

In a strategy note Thursday, the research house said the equity market was likely to resume on its upward trend as any secondary fallout from the slumping crude oil price shall be largely contained to among the major net exporting countries, e.g. no widespread contagion of Russian Ruble collapse.

“Revised our FBM KLCI 2015 year-end target from 1,970 points to 1,900 points.

“Potential downside would be limited to circa 1,700-1,650 points range.

“Insofar as the FBM KLCI downside is concern, apart from the expected earnings performance, the benchmark is also supported by its assets backing,” it said.