Affin Hwang Research sees KLCI posting second year of EPS decline

Affin Hwang Research said with continued earnings disappointment and a lack of re-rating catalysts, there has been continual capital outflows from the equity market, amounting to RM9.4bn in the year to date (2018: -RM11.7bn).

KUALA LUMPUR: Affin Hwang Capital Research expects the FBM KLCI to likely register its second consecutive year of EPS decline with a 2019E EPS decline of 1.3%.

“This, along with limited re-rating catalysts, has contributed to capital outflows and the KLCI’s year-to-date performance, ” it said in its strategy report issued on Tuesday.