KUALA LUMPUR (Nov 22): Rakuten Trade has slashed its FBM KLCI year-end target to 1,585 from 1,630 previously as it did not foresee a valuation premium to return anytime soon despite the presence of foreign funds. “On the latest corporate earnings, so far I have seen that the corporate’s results in 3Q are rather weak. “Saving grace for the local bourse would be the prevailing low market valuations that may limit outflows. “Our low valuations may translate to low volatility thus foreign funds may deem our market as a safe haven for now,” he said. “As such, we expect foreign funds to continue to flow into Malaysia as the anticipated low volatility will act as a cushion to any regional vagaries,” he said.

Source: The Edge Markets November 22, 2021 06:20 UTC