Daily Market Report (4 June 2019)
- Despite the recent concluded results season of which we reckon is within expectations, we noticed many analysts have become cautious as there were some rather apparent downgrade on forecasts among the FBM KLCI constituents.
- We presumed such stance could be due to the prevailing trade standoff between the US and China. Amongst others, the plantation sector was the biggest victim with expectations being cut rather drastically.
- As a result, earnings estimate for the sector have had been reduced from -1.9% to -7.3% for 2019. Notwithstanding this, we believe such move could be their part in managing expectations and if the planters are able to churn out better figures in the following quarters, upgrade could be on the cards again.
