KUALA LUMPUR: AllianceDBS Research Sdn Bhd has maintained its end-2019 target for the benchmark FTSE Bursa Malaysia KLCI (FBM KLCI) at 1,800 based on its 16 times blended 2019/20 earnings projection.
In a research note today, analyst Wong Ming Tek noted that the FBM KLCI could, however, hit 1,500 in a bear case scenario with further deterioration in growth expectations and trade tensions.
“We are cautious on the broader market outlook and are wary of the risks to growth if the trade war intensifies.
“However, we see stock-specific opportunities emerging,” he said.
Meanwhile, Wong said AllianceDBS expected Malaysia’s gross domestic product (GDP) to grow by 4.6 per cent in 2018 and 4.5 per cent in 2019.
“The growth forecast came in below expectations for two consecutive quarters on slower public spending and exports.
“This is the slowest since 2010 with the exception of 2016’s 4.2 per cent, and among the slowest compared to emerging ASEAN-5 (Indonesia, Malaysia, the Philippines, Singapore and Thailand),” he said, adding that weak demand from Malaysia’s export-oriented sectors would also result in slower GDP growth. - Bernama
