MIDF Research said in retrospect, foreigners offloaded -RM19.5bil and -RM6.9bil in 2015 and 2014 respectively.
KUALA LUMPUR: CIMB Equities Research raised its FBM KLCI target for end-2016 to 1,730 to reflect the higher three-year moving average price-to-earnings (P/E) of 16 times from P/E of 15.6 times.
The research house said on Friday it also introduced its end-2017 KLCI target of 1,880 which is based on 2018F earnings and forward P/E of 16 times.
“Our preferred sectors are still: i) banking, for attractive valuations and earnings recovery in 2017; ii) construction, for newflows and new order book from major infrastructure jobs like the RM28bil MRT2 project; and iii) selective smaller caps stocks for superior earnings growth,” it said.
CIMB Research also revised its top picks, which featured stocks that either have attractive valuations and/or dividend yield as well as short-term catalysts. Stocks added are Heineken Malaysia
, DRB-Hicom, Mah Sing and LBS Bina, replacing Maybank, Taliworks, IJM Corp and Bison.
On the financial results for the quarter ended June 30, 2016 it said that among the 114 companies that it actively covered, 40% reported results that were below expectations in 2Q16 versus 37% in 1Q16.
But on a more positive note, that 14% of the companies reported results that beat its expectations against 8% in 1Q16.
“However, companies that were below our expectations rose from 37% (1Q16) and 28% (2Q15) to 40% in 2Q16. Other than the aviation sector, most of the sectors disappointed. These sectors include: automotive, conglomerates, healthcare, services and the shipping sectors,” it said.
Following the latest results season, CIMB Research revised down its 2016 market earnings per share (EPS) to negative 1.3% (compared with 1.8% EPS growth three months back).
“However, we are turning more positive on the market as we project stronger 2H earnings, driven by better performance from the commodity, banking and construction sectors.
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