KUALA LUMPUR: The FTSE Bursa Malaysia KLCI (FBM KLCI) index is expected to reach 1,730 by the end of 2024, based on a price-to-earnings ratio (PER) of 16.5 times with 16 percent earnings growth, according to Rakuten Trade Sdn Bhd.
This is an increase from the previous target of 1,660.
Its head of research, Kenny Yee Shen Pin, said this expectation is driven by improved sentiment, thus moving the valuation into a higher market preview PE.
"Previously the 1,660 targets were valued at the market PE around 15.5 to 16 times, and also entered by better corporate earnings growth and a higher PE."That is why our target for the KLCI this year has increased to 1,730," he said during Rakuten Trade's third quarter market outlook media briefing today.
Rakuten Trade equity research vice president Thong Pak Leng said that the daily trading volume has increased, and will attract more investors.
Trading volume stood at 4.74 billion yesterday, valued at RM3.61 billion.
"The increasing daily trading volume has increased appetite for investors. I think this will attract more investors to come into the play. Therefore I think it's getting more happening, and that's why more than 1,700 is not impossible," Thong said.