Rakuten Trade cuts KLCI year-end forecast to 1,720 points

PETALING JAYA: Rakuten Trade has revised downward its KLCI year-end forecast to 1,720 points from 1,760 points.

“This is due to the weaker corporate earnings in the bourse and external factors,” said its head of research Kenny Yee (pix) at Rakuten’s second half market outlook briefing today.

For 2019, it has revised the forecast for Malaysia’s corporate earnings to a contraction of 0.5% from its previous expectation of a 2.3% growth.

Meanwhile, Rakuten expects the ringgit to test the RM4.00 level against the US dollar by the end of the year.

“This will be driven by foreign net inflows and the start of pump priming activities in the country,” Yee explained.