It’s a wrap for May; what’s next?
by Ivy NG Lee Fang, CFA │ T: (60) 3 2261 9073 │ E: firstname.lastname@example.org
The KLCI fell 1.1% mom in May 21 as market sentiment was dented by rising Covid-19 cases.
The 1Q results season in May was a positive but this was offset by the news of a full lockdown nationwide.
Jun has historically been a positive month, with the KLCI posting +0.3%/+0.6% mom returns over the past
The KLCI is not expensive as it trades at 2 s.d. below its 3-year average P/E of 16.2x. If vaccination
progress picks up pace in Jun/Jul, investors could re-rate the market on recovery optimism.
Key events to watch out for in Jun/Jul: FTSE Bursa Index Review on 3 Jun, US FOMC meeting on 15-16
Jun, update on FMCO post 14 Jun, OPEC meeting on 1 July