The FBM KLCI staged a marginal rebound on the local bourse after China’s interest rate cut to support economic growth. We believe the bargain hunting activities may sustain in the near term despite the pullback on Wall Street ahead of the US Federal Reserve Chair’s testimony to Congress as it is fairly oversold on the FBM KLCI. Nevertheless, the upside might be capped over the near term prior to the state elections that will be held in 3Q2023.