AmResearch cuts end-2014 FV for KLCI to 1,800

KUALA LUMPUR: AmResearch has tweaked its end-2014’s fair value for the FBM KLCI to 1,800 as it trims its corporate earnings growth estimate to only 1.8% for this year from 10% in 2013. 

“Although we are currently projecting corporate earnings growth to reaccelerate by 9.9% moving into 2015, we are introducing a modest 2015’s fair value for the KLCI at 1,880 – based on 16 times price-to-earnings (PE), implying a limited upside potential from the current level of 1,809,” it said on Monday.