MIDF outlook for KLCI remains the same, after the 3QCY22 results season turned out largely within its expectation whereas the downward revisions to aggregate earnings estimate and forecast of both FBM KLCI constituents under its coverage, as well as stocks under its MIDFR Universe, were not systemic but mainly driven by lumpy cuts to forward earnings of a handful of companies.
In this sence the research house maintains its FBM KLCI end-2022 target at 1,550 points amid optimism over the imminency of Fed pivot in December, strengthening Ringgit vis-à-vis US Dollar which may further attract inflow of foreign funds, and Malaysia’s hitherto resilient macro recovery as attested by the better-than-expected 3QCY22 GDP growth figure.
However, it said the optimism is moderated by concerns over further postponement of the Fed pivot, and sudden escalation of the ongoing war in Ukraine.
