AmResearch is cutting its end-2015’s fair value for the FBM KLCI from 1,880 to 1,650 by lowering the implied price-to-earnings (PE) to 15 times – based on the long-term mean.
It said on Wednesday it had previously pegged our fair value to one standard deviation above the mean PE strictly because of liquidity reasons.
“The market has been trading within one standard deviation above its post-2008 global financial crises mean of 15.7 times over the last two years,” it said.
External liquidity conditions may no longer be supportive of valuations as the passage of time to a hike in the US Fed Funds rate narrows in 2H15.
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It said on Wednesday it had previously pegged our fair value to one standard deviation above the mean PE strictly because of liquidity reasons.
“The market has been trading within one standard deviation above its post-2008 global financial crises mean of 15.7 times over the last two years,” it said.
External liquidity conditions may no longer be supportive of valuations as the passage of time to a hike in the US Fed Funds rate narrows in 2H15.
Click Here To Register For Free Trial Services OR Give A Missed Call : +60350219047 Follow Us On Twitter : www.twitter.com/epicresearchmy Like Us On Facebook : www.facebook.com/EpicResearchMalaysia Need Any Assistance Feel Free To Mail Us at : info@epicresearch.my
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