‘Earnings of FBM KLCI component stocks to ease 0.7pc this year’

KUALA LUMPUR: Earnings of Bursa Malaysia’s 30 companies that make up the benchmark FTSE Bursa Malaysia KLCI (FBM KLCI) are expected to taper 0.7 per cent in the current financial year, said MIDF Amanah Investment Bank Bhd.

However, the companies, which include Tenaga Nasional Bhd, Malayan Banking Bhd and Public Bank Bhd, could see their collective profit grow 7.06 per cent next year as per Bloomberg consensus, said MIDF Amanah.

Overall, the FBM KLCI showed an uptrend in the first four months of the year, where it almost hit 1,900 points on April 19 before trending down this month.

As of June 25, the index had lost 6.6 per cent amid foreign fund outflows, in conformity with other emerging markets.

Year-to-date, total overall market volume was 17 per cent higher on a year-on-year basis, said MIDF Amanah in its mid-term market strategy and outlook report yesterday.

In relation to sectoral indexes, MIDF Amanah said the KL Consumer Product Index was the only gainer so far this year, advancing 13.6 per cent and outperforming the FBM KLCI.

It said other outperformers of the local bourse were the KL Financial Index, KL Industrial Index and the KL Plantation Index.

The KL Construction Index led decliners, with a 34.8 per cent year-to-date drop, with risk-on sentiment dampened by the review of big-ticket projects.

Other main laggards included the KL Property Index.