KUALA LUMPUR: Bursa Malaysia's benchmark FBM KLCI may consolidate its recent gains after rallying from an August 4 low of 1,483 points to 1,525 yesterday, pending a new PM announcement possibly by this week).
Hong Leong Investment Bank Bhd reiterated its view of limited downside to the already-depressed FBM KLCI (trading at about 13.5 times 2021 price earnings versus 10-year average 17x).
This was amid low foreign ownership (a historic low of 20.2 per cent as of July) and expectations of a more meaningful recovery in the fourth quarter of 2021 when Malaysia crossed the vaccination herd immunity (expected to achieve the 80 per cent threshold of the adult population being fully vaccinated by October).
HLIB said short-terrm supports were estimated at 1,483-1,500 while resistances were pegged at 1,534-1,556 levels.