KUALA LUMPUR (Jan 22): Malaysia’s stocks likely to continue bullish momentum this year driven by factors including growth in exports, earnings recovery, foreign inflows, and improved corporate balance sheets, according to a Jan 22 Nomura report by analysts led by Tushar Mohata.

* Top picks: CIMB, Axiata, Malaysia Airports, AirAsia, Muhibbah, Genting, Genting Malaysia, Mynews Holdings, Dialog, Sunway Construction, Public Bank and Tenaga

* KLCI year-end target raised to 1,900 representing 4% upside from current levels; implies EPS growth of 5% and target 2018 forward P/E of 16.7 times

* “Appreciating ringgit has historically been correlated with KLCI upside”

** Ringgit strengthening against currencies of main countries where foreign workers are sourced should ease labor costs

** Corporates are also likely to report FX translation gains in 4Q17 results season

* Next general election predicted to be in 2Q18

** Benchmark index rose in 12-month period in three of past four election years

** Ruling national coalition projected winner