Corporate earnings in 2QCY16 contracted for the eighth time on the back of a weaker albeit expanding GDP. However, we were encouraged by four measures

Strategy � KLCI (POSITIVE, maintain) - Waiting for the tide to turn Corporate earnings in 2QCY16 contracted for the eighth time on the back of a weaker albeit expanding GDP. However, we were encouraged by four measures of results-season momentum that although still negative, imply a gradual improvement in expectations. We believe that the macro environment will improve going forward with 2QCY16 being the trough, and are guardedly optimistic that a market EPS recovery would follow thereafter. We remain POSITIVE on Malaysia�s macro outlook and the KLCI�s earnings outlook.

Other Calls

Economy � Foreign Reserves - Reserves stood at US$97.5bn as at end-August

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