Executive Summary
Emerging from a lost decade caused by the 1MDB debacle, domestic political upheavals and Covid-19 public health crisis, the FBMKLCI is poised to sustain its upward trajectory after it gained 135.43 points or 9.3% to 1,590.09 in the 1H24. The newfound strength, which is supported by a stable and committed government, rests on 1) improving economic outlook, 2) confidence in domestic fiscal consolidation and structural reforms, 3) spillover effects from sizeable public spending, 4) steady inflow of FDIs in growth sectors, 5) a double-digit growth in corporate earnings, and 6) undemanding valuation. While maintaining our end-2024 target of 1,690 based on CY25 PER of 14.4x, we are optimistic that Malaysia has the right ingredients to propel the FBMKLCI to a new all-time high before the next general election, consistent with our view that it is currently mid-way through a major bull cycle. This will effectively narrow the valuation gap with the 5-year historical average PER of 17.6x as Malaysia’s structural reforms gain traction and foreign funds increase their exposure in undervalued emerging markets with strong growth prospects. The timing may be just right for them to switch gradually from pricy developed markets, especially the US, whose economy is expected to slow down and be subjected to greater uncertainty post the presidential election, especially if Donald Trump is re-elected.
Source: TA Research - 2 Jul 2024
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2024-07-04
GAMUDA2024-07-04
IBRACO2024-07-04
INARI2024-07-04
INARI2024-07-04
IOIPG2024-07-04
PBBANK2024-07-04
SUNCON2024-07-04
TM2024-07-04
YTLPOWR2024-07-04
YTLPOWR2024-07-03
ABLEGLOB2024-07-03
FFB2024-07-03
GAMUDA2024-07-03
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INARI2024-07-03
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IOIPG2024-07-03
PBBANK2024-07-03
SCOMNET2024-07-03
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SIMEPROP2024-07-03
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SUNCON2024-07-03
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TM2024-07-03
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ABLEGLOB2024-07-02
ABMB2024-07-02
ABMB2024-07-02
ABMB2024-07-02
FFB2024-07-02
FFB2024-07-02
GAMUDA2024-07-02
GAMUDA2024-07-02
GAMUDA2024-07-02
IBRACO2024-07-02
IBRACO2024-07-02
INARI2024-07-02
INARI2024-07-02
INARI2024-07-02
INARI2024-07-02
INARI2024-07-02
INARI2024-07-02
INTA2024-07-02
IOIPG2024-07-02
IOIPG2024-07-02
IOIPG2024-07-02
PBBANK2024-07-02
PGF2024-07-02
SCOMNET2024-07-02
SCOMNET2024-07-02
SCOMNET2024-07-02
SIMEPROP2024-07-02
SIMEPROP2024-07-02
SIMEPROP2024-07-02
SIMEPROP2024-07-02
SUNCON2024-07-02
SUNCON2024-07-02
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TM2024-07-02
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TM2024-07-02
TM2024-07-02
TM2024-07-02
TM2024-07-02
YTLPOWR2024-07-02
YTLPOWR2024-07-01
ABMB2024-07-01
ABMB2024-07-01
GAMUDA2024-07-01
GAMUDA2024-07-01
GAMUDA2024-07-01
INARI2024-07-01
INARI2024-07-01
INARI2024-07-01
INARI2024-07-01
INARI2024-07-01
INTA2024-07-01
IOIPG2024-07-01
PBBANK2024-07-01
PBBANK2024-07-01
SCOMNET2024-07-01
SIMEPROP2024-07-01
SIMEPROP2024-07-01
SIMEPROP2024-07-01
SIMEPROP2024-07-01
SUNCON2024-07-01
SUNCON2024-07-01
SUNCON2024-07-01
TM2024-07-01
TM2024-07-01
TM2024-07-01
TM2024-07-01
TM2024-07-01
TM2024-07-01
YTLPOWR2024-07-01
YTLPOWR2024-06-28
ABMB2024-06-28
ABMB2024-06-28
ABMB2024-06-28
FFB2024-06-28
GAMUDA2024-06-28
GAMUDA2024-06-28
GAMUDA2024-06-28
GAMUDA2024-06-28
GAMUDA2024-06-28
GAMUDA2024-06-28
INARI2024-06-28
INARI2024-06-28
IOIPG2024-06-28
PBBANK2024-06-28
PBBANK2024-06-28
SCOMNET2024-06-28
SIMEPROP2024-06-28
SIMEPROP2024-06-28
SIMEPROP2024-06-28
SIMEPROP2024-06-28
SUNCON2024-06-28
SUNCON2024-06-28
SUNCON2024-06-28
SUNCON2024-06-28
SUNCON2024-06-28
SUNCON2024-06-28
TM2024-06-28
TM2024-06-28
TM2024-06-28
TMCreated by sectoranalyst | Jul 04, 2024
Created by sectoranalyst | Jul 02, 2024