The FBM KLCI has declined for the 3rd consecutive session in line with the sentiment
in the regional benchmark indices. Wall Street traded mixed near the resistance
zone for all the 3 major indices. We think the declining 10-year US Treasury yield
could be indicating that the market is looking at a softer inflationary pressure going
forward, which may translate to less likelihood of another rate hike by the Fed. Closer
to home, we believe trading activities may turn softer as most of the corporate
earnings were not up to expectations. On the commodity markets, the Brent oil
prices traded above the USD82/bbl level with the anticipation of further extension of
the production cuts to be announced in the OPEC+ meeting on 30th Nov.
Sector focus: We believe the inclusion of YTL and YTLPOWR could spur some
trading interest within the Utilities sector, while the traders may look into the
Consumer sector with a good set of results from QL and PWF. Besides, the Building
Material sector may be seen traded actively with strong earnings growth from
MNHLDGS and SCGBHD. On the flip side, the selling pressure could emerge further
on glove stocks amid weaker results from SUPERMX.
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