MIDF Amanah Investment Bank Bhd (MIDF Investment) maintained its base target by the end of this year for the FTSE Bursa Malaysia KLCI (FBM KLCI) at 1,700 points.
According to the investment bank, the revised increase in the aggregate future income of the FBM KLCI component is almost entirely contributed by the healthcare sector while plantations are seen to provide additional marginal impetus.
“However, the consumer goods and services sector; financial; telecommunications and media as well as utilities are expected to show slower revenue growth, while energy sector revenue; industrial; as well as transportation and logistics are expected to remain unchanged.
"Following the mixed overall performance, we maintained the base target for the end of 2021 on the FBM KLCI at 1,700 points," MIDF Investment explained in a research note today.
MIDF Investment added that the aggregate revenue reported by the 30 components of the FBM KLCI had increased to RM15.25 billion in the fourth quarter of the 2020 calendar year.
Bernama reported that it was a positive growth for quarter-on-quarter and year-on-year performance at 14.5% and 21.4% respectively.
“Based on the adjustment, the normal income aggregate of 30 components of the FBM KLCI in the fourth quarter of calendar year 2020 increased consecutively at 13.5% quarter-on-quarter and 21.6% year-on-year to RM15.38 billion, the highest since the second quarter of calendar year 2017 due to external performance usual healthcare counters, especially gloves, which collectively recorded revenue growth of 822.3% year-on-year, ”he said.
For shares under MIDF coverage, the percentage of companies that recorded lower earnings than MIDF expected, declined to 21% in the fourth quarter of calendar year 2020 from 23% in the previous quarter.
On the other hand, explained MIDF Investment, the percentage that recorded a positive increase shock increased to 37% from 22% for the same period.
