Strategy Note /
Malaysia

MY : Strategy - It's a wrap for March; what's next?

    Ivy Ng Lee
    Ivy Ng Lee

    Head of Malaysia Research, Regional Head of Agribusiness

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    CGS-CIMB
    4 April 2021
    Published byCGS-CIMB

    The KLCI fell 0.3% mom in Mar 21 as improvement in market sentiment at the start of the month was disrupted by concerns over rising bond yields and political instability towards the later part of Mar. Apr has historically been a positive month, with the KLCI posting +0.5%/+2.1% mom returns over the past 10/43 years. There could be a continuous shift to laggard/recovery plays if the vaccine rollout is successful. The strong 4Q20 results season is a positive but it also sets the earnings bar higher for 2021F, in our view. We expect market to be supportive as it currently trades at 12M P/E of 14.2x, 2 s.d. below its average P/E. Key events to watch in Apr 21 are World Bank and IMF Spring Meeting in 5-11 Apr, the ECB meeting on 22 Apr and the FOMC meeting during 27-28 Apr.