2014 0utlook JF Apex expects higher corporate earnings to spur KLCI to 1920

by **Cals** Thu 26 Dec 2013, 16:09

2014 0utlook JF Apex expects higher corporate earnings to spur KLCI to 1920

Business & Markets 2013

Written by Jonathan Gan at theedgemalaysia.com

Thursday, 26 December 2013 14:51

KUALA LUMPUR (Dec 26): The FBM KLCI is expected to reach 1920 end-2014, according to JF Apex Securities.

In a market outlook report released today, the research house revised upward its year-end 2014 FBM KLCI target to 1920 from the previous 1890 points following an adjustment of 2013-2015 corporate earnings.

“Our year-end target index renders 4-5% or 80-90 points upside from the current level of 1830-1840” it said in the report.

The report adds that it sees corporate earnings growing by 6.9% against 5.7% this year on the back of stronger earnings growth from Plantation, Utilities, Oil & Gas and Property sectors. The research house forecasts a GDP growth of 5% for 2014F compared to 4.7% for 2013F.

Top picks for the Oil & Gas sectors are Sapura Kencana, Bumi Armada, Pantech, Daya and Perisai, it said.

For the Construction Sector, the research house suggests IJM, Gadang, Crest Builder, HSL and Eversendai

For the Plantation Sector, the top picks are Genting Plantation, Sime Darby TDM and United Malacca

The research house has also advocated plays in water related stocks such as Engtex which might benefit from the Selangor water impasse and pipe-laying programmes to reduce non-revenue water.