Daily Market Report (4 Dec 2019)
- Trusting Trump to come clean on the US China trade talk is likened to the sun rises from the west. As it is, global equity markets are again roiled by the diminishing hopes of any agreement between the US and China.
- Looks like we may have to endure the stalemate till 2020 amid heightened market volatility.
- We are indeed surprised by the way foreign funds are shunning Malaysia as we are indeed heading towards a more positive direction next year. With corporate earnings estimated to grow above 6% in 2020, valuations on the local bourse seems to be very reasonable.
- Based on 1,560 the FBM KLCI is trading on a market PER of below 15x which is deem highly attractive. Therefore, we maintain our view that foreign funds would return anytime soon.
- For today, we expect the benchmark index to test 1.560 before rebounding towards the 1,565 mark.
