KUALA LUMPUR: AmInvestment Bank Bhd has made a mild upgrade to its end-2024 target for the FTSE Bursa Malaysia KLCI (FBM KLCI), increasing it to 1,550 points from 1,545 points previously following slight adjustments to banking earnings.
The investment bank said its FBM KLCI earnings projections have been marginally tweaked by one to two per cent for 2024-2025.
The slightly higher base-case end-2024 FBM KLCI targets were pegged to a 2024 forecast (2024F) price-to-earnings ratio (P/E) of 14.5 times - slightly below its five-year median of 14.8 times, which is likely to decline over the next quarter, given persistently low post-pandemic valuations.
"Our base-case target stems from rising downside risks -- including an appreciating ringgit towards the end of the year which could unravel foreign equity inflows attracted by the weak currency and slowing global economic growth prospects.
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