The FBM KLCI ended slightly lower on the final day of 2023 amid profit taking
activities. For the year, it has dropped 2.7%, extending the losses for the 3rd year in
a row. However, the US stock markets ended with a bang as 3 of the major indices
charged strongly for the year, despite weaker closing towards the final day of the
day; the Dow is closing near all-time-high, while the S&P500 and Nasdaq are just shy
of 1% and 8% from their respective all-time-high levels. Closer to home, PMX will be
launching the PADU system, which will consist of individual profile and household
details. This could provide a comprehensive view towards crafting the subsidies for
the population. On the commodity markets, Brent oil traded around USD77/bbl mark,
closing the year with a 10.4% drop as demand concerns outweighed the geopolitical
tension risk.

Sector focus: With the US trading near the all-time-high zone, we expect buying
interest to emerge on the local front within the Technology sector. Meanwhile, with
the PADU system being launched, there might be follow up in the targeted subsidies
going forward, which may affect the Consumer and Utilities sectors. Also, should
there be any revival of the KL-SG HSR, it may provide an upside boost towards the
Construction, Building Material, and Property sectors.