CIMB Research maintains Neutral on KLCI, year-end target 1,610 points

KUALA LUMPUR (June 4): CIMB Research has maintained its Neutral rating on the FBM KLCI and said the May results season was, as expected, poor, making it the 8th straight results season that can be considered weak.

However, the research house in a note Monday said that similar to February, this major results season showed signs of improvement which gives hope that the worst could be behind.

"We maintain our Neutral call and end-2012 KLCI target of 1,610pts which is based on an unchanged 13x CY13 P/E. We continue to prefer defensive sectors such as brewery, gaming REITs and utilities. External and general election risks remain our biggest concerns," it said.