KUALA LUMPUR (April 2): MIDF Research has raised its end-2012 target for the FBM KLCI to 1,600 points from the earlier 1,530 points.
The tendency to ‘buy on weakness’ among the local institutions will help our equity market to outperform its regional peers during a cyclical downturn, the research house said in a note Monday.
Hence even if the FBM KLCI is expected to close the year at below is target year-high of 1,670 points, MID Research said it anticipates buying support to emerge at the 1,600 points psychological level.
“There is therefore a real possibility that the FBM KLCI will close 2012 at 1,600 points, or mere 4.2% off its target year-high.
“Hence we revise upwards our FBM KLCI year-end 2012 target to 1,600 points from the earlier 1,530 points.
MIDF Research said that at 1,600 points, the FBM KLCI was pegged at 15 times, and that CY2012 earnings, was slightly more than 25th-percentile of its 5-year historical ‘peace’ period forward PER band of between 14.0-17.7 times.
The tendency to ‘buy on weakness’ among the local institutions will help our equity market to outperform its regional peers during a cyclical downturn, the research house said in a note Monday.
Hence even if the FBM KLCI is expected to close the year at below is target year-high of 1,670 points, MID Research said it anticipates buying support to emerge at the 1,600 points psychological level.
“There is therefore a real possibility that the FBM KLCI will close 2012 at 1,600 points, or mere 4.2% off its target year-high.
“Hence we revise upwards our FBM KLCI year-end 2012 target to 1,600 points from the earlier 1,530 points.
MIDF Research said that at 1,600 points, the FBM KLCI was pegged at 15 times, and that CY2012 earnings, was slightly more than 25th-percentile of its 5-year historical ‘peace’ period forward PER band of between 14.0-17.7 times.
