Market sentiment has improved, and the composite index can reach 1,730 points by the end of the year
Rakuten Trade (Rakuten Trade) was revised with the help of corporate profits and improved market sentiment $FTSE Bursa Malaysia KLCI Index(.KLSE.MY$The target for this year was adjusted from 1,660 points to 1,730 points.
Yu Xianbin, head of trading research at Rakuten, pointed out in today's online briefing that the profit of this year's composite index is expected to increase by 16.1% year on year. Coupled with the improvement in market sentiment now driven by various good news and improved capital flow, the annual target for the composite index was raised to 1,730 points.
“We believe that with the current improvement in market sentiment, the valuation of the Composite Index should be higher, so we set the target for the Yearly Composite Index at 1,730 points based on a higher estimated cost-benefit ratio of 16.5 times and profit growth of around 16%.”
According to Rakuten Trading, the Composite Index has risen 11.7% year to date, making it one of the best performing stock markets in the Asia-Pacific region.
Yu Xianbin, head of trading research at Rakuten, pointed out in today's online briefing that the profit of this year's composite index is expected to increase by 16.1% year on year. Coupled with the improvement in market sentiment now driven by various good news and improved capital flow, the annual target for the composite index was raised to 1,730 points.
“We believe that with the current improvement in market sentiment, the valuation of the Composite Index should be higher, so we set the target for the Yearly Composite Index at 1,730 points based on a higher estimated cost-benefit ratio of 16.5 times and profit growth of around 16%.”
According to Rakuten Trading, the Composite Index has risen 11.7% year to date, making it one of the best performing stock markets in the Asia-Pacific region.
Yu Hyun-bin also said that earlier this year, Prime Minister Dato' Sri Anwar asked the Government Federation Investment Agency (GLIC) to reduce overseas investment and focus more on the local market, bringing a major boost to the activity of the local stock market.
“In the past, foreign capital dominated the capital movements of Malaysian stocks, but recently local investment institutions have become the main driving force. We believe that in the future, the flow of local capital in Malaysian stocks will gradually increase, leading to a rise in the market.”
He added that China's six largest official federated investment institutions are estimated to manage a total of nearly RM1.9 trillion in assets.
“Assuming that 10% to 15% of the capital (about 190 billion to RM285 billion) is invested in overseas stock markets, then as long as 10% of overseas capital flows back to China, about 20 billion to 30 billion ringgit may flow into the Malaysian stock market, bringing a significant boost to the stock market.”
Still not in a bull market
Furthermore, Yu Hyun-bin pointed out that the share of Malaysian stocks held by foreign investors has also continued to improve, and now it continues to be above 17%. I believe it can surpass the 20% mark this year, or even surpass the 25% level.
However, despite the current performance of Malaysian stocks, Yu Xianbin believes that Malaysian stocks have not yet entered a bull market; currently they are only warming up.
“Next, investors should not just focus on blue-chip stocks; they should look at various stocks from a more comprehensive perspective. In any case, the banking industry is the growth engine of the national economy, and Malaysian bank stocks are still reasonably valued today. Once capital is significantly poured into the market, bank stocks may become one of the main targets.”
The banking, construction, power utilities, technology, and telecom industries are the five areas that Rakuten Trading currently gives an “increase in wealth” rating.
At the same time, $CLOUDPT(0277.MY$、 $KERJAYA(7161.MY$、 $OCK(0172.MY$、 $SNS(0259.MY$versus $TIMECOM(5031.MY$These are currently the top 5 preferred stocks for Rakuten Trading.
However, despite the current performance of Malaysian stocks, Yu Xianbin believes that Malaysian stocks have not yet entered a bull market; currently they are only warming up.
“Next, investors should not just focus on blue-chip stocks; they should look at various stocks from a more comprehensive perspective. In any case, the banking industry is the growth engine of the national economy, and Malaysian bank stocks are still reasonably valued today. Once capital is significantly poured into the market, bank stocks may become one of the main targets.”
The banking, construction, power utilities, technology, and telecom industries are the five areas that Rakuten Trading currently gives an “increase in wealth” rating.
At the same time, $CLOUDPT(0277.MY$、 $KERJAYA(7161.MY$、 $OCK(0172.MY$、 $SNS(0259.MY$versus $TIMECOM(5031.MY$These are currently the top 5 preferred stocks for Rakuten Trading.
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[Compiled by Reporter] Lin Dixuan
[Full Report]Click to read Preferred Stock Reviews
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Source: Nanyang Siang Pao
Disclaimer: This content is for informational and educational purposes only, and does not constitute any specific investment, investment strategy, or recommendation endorsement. The reader shall bear any risk and responsibility arising from reliance on this content. Always conduct your own independent research and evaluation and consult professional advice if necessary before making any investment decisions. The author and related participants are not responsible for any loss or damage resulting from the use or reliance on the information contained in this article.
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102702979 : Not saying that in early August, there will be a wave of major correction in US stocks that will last for two weeks, which may affect Malaysian stocks. I'm not guessing that the 50-year data is the same; it's almost the same every year. June and August
TanSh 102702979 : Was last year a bad one?