RHB Research Revises Year End FBMKLCi Target to 1,580 Points From 1,670 Points Due To Uncertainity

RHB Research has revised year end FBMKLCI target to 1,580 points from 1670 points after ascribing a lower 15x)from 16x) P/E to FY23 EPS to reflect the less favourable operating environment going forward,

It said that it was Overweight on Banks non-bank financial institutions (NBFI), oil & gas, healthcare, basic materials, gaming and technology.

On attributes that investors would be looking for, it said that key investment attributes to focus on include companies with robust balance sheets, pricing power, ability to pass through higher costs, captive customer bases, and a strong ESG profile.

RHB advocates a core defensive stance, coupled with a trading mentality. Captive domestic investment funds should seek attractive entry points (nibble on weakness) to build positions. We also see selective opportunities in the small cap space.

On the 2h22, it said with the economic re-opening now fully priced in, the markets’ attempt to digest prospects for 2H22 and beyond are being hampered by limited forward visibility on business and macroeconomic conditions.

It said that sentiment will remain fragile, given the potent cocktail of various external and internal macroeconomic threats, coupled with domestic political and regulatory worries.

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