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NewsHong Leong cuts KLCI year-end target to 1,610
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Hong Leong cuts KLCI year-end target to 1,610
by hlk Mon 05 Sep 2011, 11:40
Hong Leong Investment Bank Research (HLIB Research) has cut its year-end target for the FBM KLCI to 1,610 based on lower price earnings(PE) of 14 times 2012 earnings.
"The second quarter CY11 reporting season showed disappointing results for the second consecutive quarter," the bank said in a note today.
It said, 13 sectors were below expectations including banking, transport, building material and technology, while seven sectors surprised on the upside.
The research unit of Hong Leong Investment Bank believes there are still ample domestically driven factors that would sustain corporate earnings.
They are the Economic Transformation Programme (ETP) gaining traction, wealth creation culminating in continued consumption amidst rising consumerism and Petronas contract awards, it said.
HLIB's 2011 and 2011 earnings per share (EPS) growth forecast has been cut to 11.3 per cent and 11.4 per cent respectively from 12.1 per cent to 12.3 per cent.--Bernama
"The second quarter CY11 reporting season showed disappointing results for the second consecutive quarter," the bank said in a note today.
It said, 13 sectors were below expectations including banking, transport, building material and technology, while seven sectors surprised on the upside.
The research unit of Hong Leong Investment Bank believes there are still ample domestically driven factors that would sustain corporate earnings.
They are the Economic Transformation Programme (ETP) gaining traction, wealth creation culminating in continued consumption amidst rising consumerism and Petronas contract awards, it said.
HLIB's 2011 and 2011 earnings per share (EPS) growth forecast has been cut to 11.3 per cent and 11.4 per cent respectively from 12.1 per cent to 12.3 per cent.--Bernama
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