The FBM KLCI rebounded on the support and snapped a 5-day losing streak with the
emergence of broad market bargain hunting activities. Meanwhile, the US stock
markets continued with the upward momentum ahead of the important inflation data
and the 2-day FOMC meeting this week. We believe the narrative on the CPI is
significant to determine the interest rates direction going forward; thus if the US CPI
is cooling more-than-expectation, the Fed may turn less hawkish next year and
potential rate cut could materialise during 1H2024. At this juncture, we believe the
buying interest may continue to spillover towards stocks on the local front. On the
commodity markets, the Brent oil prices extended its rebound despite the demand
concerns and worry on OPEC+ cuts may not be enough to keep the inventories low.
Sector focus: As expected, the YTL-related companies trended positively following
the data centre collaboration news with NVIDIA and may spur trading interest in the
Technology sector. Besides, the plans to revive KL-SG HSR provide buying interest
towards the Construction, Property, Building Material as well as Renewable Energy
sectors. Meanwhile, with the rebound in Brent oil prices, we may expect trading
interest to build up within the O&G sector.
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