JPMorgan upgrades Malaysian equity market, raises KLCI target base case to 1650

JPMorgan upgrades Malaysian equity market, raises KLCI target base case to 1650

KUALA LUMPUR (July 11): JPMorgan has upgraded its ratings for Malaysia’s equity market, recognising it as a standout performer within the Asean region, according to the firm’s recent note.

JPMorgan has consequently raised its KLCI target base case to 1,650, up from the previous 1,500, with a bull/bear scenario of 1,700/1500.

The firm noted that the Malaysian market has posted an about 9% return year-to-date (YTD), positioning it as the highest earner among Asean countries, where MSCI Asean is down 4% YTD.

This notable performance is supported by significant policy reforms, investments in data centres, and continuous infrastructure developments.

The firm highlighted that these tailwinds align with its 2024 outlook but are progressing at a much stronger pace than initially anticipated.

This unexpected acceleration, combined with increased deployment of domestic funds, has led to a “material re-rating of KLCI/MSCI Malaysia (MXMY)”.

Foreign investors’ positioning in Malaysia remains light, but JPMorgan believes there is “greater upside once it inflects upwards”.

While foreign investment lags, the firm remains “increasingly constructive on the Malaysia equities outlook”.

The upgrade is buoyed by strong tailwinds, with the firm raising its target for the KLCI index to 1,650, from 1,500 previously.

More to come

Read also:

JPMorgan upgrades Malaysia amid economic reforms, renewed investor confidence, data-centred investments — interview

  • https://www.msn.com/en-my/money/topstories/jpmorgan-upgrades-malaysian-equity-market-raises-klci-target-base-case-to-1650/ar-BB1pMeUt?ocid=00000000

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