Monday, October 26, 2009

DJ MARKET TALK: CIMB Keeps Overweight On KLCI;2010 Target At 1400

[Dow Jones] CIMB retains overweight rating on Malaysia equities, keeps 2010 year-end target of 1400 for KLCI. Says Budget 2010 still managed to disappoint despite low expectations with Malaysia's 11-12 years of budget deficits, strong year-to-date stock market performance and low likelihood major election will be called next year. "While the 1 percentage point cut in the top tax rate for individuals to 26% is reason for the investment community to rejoice, investors will be disheartened by the levying of a 5% real property gains tax (RPGT) and the absence of a corporate tax cut," says analyst. Thinks budget is responsible and prudent "that builds the foundations for the longer-term health of the economy and stock market." KLCI down 0.4% at 1262.08.


Dow Jones Newswires

October 26, 2009 02:39 ET (06:39 GMT)

Copyright (c) 2009 Dow Jones & Company, Inc.

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