CIMB is very bullish on the Malaysian market. It is projecting a target of 1220 for the KLCI at year end. It cites the gradual reinvestment of institutional funds' spare cash and the "better than expected" 1Q results for the local companies as the reasons for its good feelings. Very well.
At about the same time, Maybank came out with a very bearish report. It is targeting the KLCI at 990 at year end. It cites the worse than expected 1Q GDP growth of -6.2% and the poor 1Q earnings (62% of its stock coverage of 72 companies reported lower profits) of the local companies as its reasons for the lousy feeling.
What a big contrast in the forecasts. I think I can be a stock market forcaster too. I bet that the KLCI will end the year at 1105 - the middle of the two forecasts. I am confident that I can beat at least one of the above investment banks. Just wait and see.
Thursday, June 4, 2009
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