PIVB keeps 2021 FBM KLCI target unchanged at 1,590

Public Investment Bank Bhd (PIVB) has maintained its year-end 2021 benchmark FTSE Bursa Malaysia KLCI (FBM KLCI) target unchanged at 1,590, although it believes that short-term market reaction is likely to be negative from the “shock” of Cukai Makmur, a one-off measure announced in Budget 2022. While the much-talked about capital gains tax did not materialise, it said the government did, however, proposed Cukai Makmur (prosperity tax) to help ease its burden in assisting the people and ensure that the nation’s health system is more resilient in facing future threats. “It has been reported that at least 120 Bursa Malaysia-listed companies will be affected by this, potentially knocking off about RM8 billion (about 12 per cent) from the earnings basket,” it said in a note on 1 November.