For now, CGS-CIMB is keeping its year-end target for the Straits Times Index at 3,350 points, which is based on 10.5x earnings this year.
CGS-CIMB expects the coming reporting season for the quarter ended March to be “muted”. While most of the sectors under the brokerage’s coverage will deliver higher y-o-y revenue, earnings could be tempered because of higher operating and funding costs.
With most recent government data and policy stance signalling that the economy is growing at a weaker-than-expected pace, the focus ahead will be changes in the companies’ guidance, and impact of China’s re-opening on the broader economies and their businesses.
