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OSK Research raises end-2010 KLCI target to 1,496 |
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Business & Market 2010
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Written by Surin Murugiah
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Thursday, 14 October 2010 09:21 |
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KUALA LUMPUR: The postponement of the goods and services tax (GST) as announced by the Ministry of Finance on Wednesday, Oct 13 raises the possibility for an early General Election in 2011, said OSK Investment Research.
The research house said market sentiment could be buoyed going into 1H2011, as it expects the the General Election to be preceded by strong positive news flow in relation to infrastructure development.
"Accordingly we raise our market PER to 16 times for 2011, thus raising our fair value from 1,580 points to 1,648 points.
"This accordingly bumps up our end 2010 KLCI target from 1,465 points to 1,496 points. We remain cautious on a potential mild retractment in the short term but are Overweight on the market moving into 1H2011," it said in a note on Thursday.
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