KUALA LUMPUR: Corporate Malaysia's equities are expected return to growth in the second half of 2024 despite high volatility of foreign fund flows.
Maybank Investment Bank Bhd head of equity research Wong Chew Hann also saiid listed companies' earnings are expected to expand 15.5 per cent after growing 20.1 per cent in the first half.
She said the earnings momentum of companies under its coverage are receiving an uplift.
"We are pretty comforted that our 15.5 per cent earnings forecast is actually quite realistic. Now we expect all sectors to record growth this year, with the exception of media," she said, adding that aviation and gloves sectors are anticipated to return to the black.
She added that the FBM KLCI valuation had improved, driven by progress in economic restructuring and fiscal reforms, as well as record high in approved investments the country had brought in.
Wong said the US interest rates, Johor-Singapore Special Economic Zone (SEZ), and a firmer ringgit will be potential catalysts for the FBM KLCI growth.
"Johor-Singapore SEZ is catalytic in bringing in more foreign direct investment as well as infrastructure developments, especially individual state," she added.
Meanwhile, she said the ringgit could be stronger driven by the US election, particularly the outcome of "Trump 2.0"
"Moving into second half of this year, we remain optimistic on these factors. We maintain our year-end FBM KLCI target at 1,680 which implies 15 times price to earnings ratio for 12-month forward," she said.