PETALING JAYA: The equity market is expected to remain supported through the second half of financial year 2026 (2H26) and into 2027, underpinned by strong domestic liquidity, resilient economic growth and expectations of accommodative US monetary policy, says RHB Research.
However, it noted that investors would likely face a more volatile trading environment amid geopolitical and political uncertainties.
Its constructive stance on domestic equities remains intact, with an end-2026 target of 1,750 points for the FBM KLCI, based on 15.5 times forward earnings per share.
“Our argument for investors to remain long domestic equities is predicated on robust liquidity conditions, sanguine RHB Economics macroeconomic forecasts and dovish views on US monetary policy, coupled with populist policy undertones given the imminent polls,” it said.
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