PETALING JAYA: UOB Kay Hian (UOBKH) Research has cut its FBM KLCI year-end target to 1,510 points from 1,620 points previously.
This is given the widespread disappointing first-quarter 2023 (1Q23) corporate earnings results, after three sequential quarters of narrowing disappointments, the research house said.
It added disappointments were prevalent in many major sectors.
This was particularly in the building materials, gloves, healthcare and technology sectors.
UOBKH Research has lowered earnings forecasts for its coverage universe by 3.7% in financial year 2023 (FY23) and 2.3% in FY24, and for the FBM KLCI by 5% in FY23 and 2.4% in FY24, respectively.
However, UOBKH Research expects its coverage universe and the FBM KLCI to deliver an earnings growth of 10.9% and 11.4%, and 6.1% and 9.6%, respectively, in 2023-2024.
UOBKH Research’s top picks are Greatech Technology Bhd
, Inari Amertron Bhd, IOI Corp Bhd, Malaysia Airports Holdings Bhd, MR DIY Group Bhd, MyEG Services Bhd and Yinson Holdings Bhd.
