05 Apr 2021 / 09:31 H. PETALING JAYA: Although corporate earnings for Q4’20 delivered better-than-expected results, CGS-CIMB has cautioned on potential earnings risks in the second half of the year due to concerns over political stability. It lowered its end-2021 FBM KLCI target to 1,699 points from 1,759 points to reflect the potential risks, as it price the market at 1.0 standard deviation discount to mean P/E. Of the 130 companies that the research house tracked during this latest results season, the ratio of companies that posted Q4’20 results above its expectation rose to 40% against 35% reported in the previous quarter while the number of underperformers fell to 25% from 31% reported previously.