The FBM KLCI ended the session with a two-day pullback as profit taking activities
were noted within the gaming heavyweights after Genting plans another round of
US$100m equity injection into Empire Resorts. Meanwhile, the Wall Street had a
volatile move after the release of CPI data, which is hotter-than-expected, while the
unemployment claims came in below-the-expectation, suggesting that the labour
market is rather strong at this juncture. With that, investors will be eyeing closely on
the PPI numbers and banks earnings releases later tonight. Nonetheless, we expect
bargain hunting activities to emerge in Malaysia’s market. On the commodity, the
Brent oil price inched higher with elevated geopolitical tension in the Middle East.
Sectors focus: Given the stabilised move in the US, we believe the buying interest
may emerge in the Technology sector. Also, following the visit of PM Lee to
Malaysia, signing of the JB-SG SEZ agreement and RTS Link ceremony, we believe
trading interest may increase going forward within the Johor-related companies. We
favour the Construction, Property, Building Material, Renewable Energy, as well as
Utilities sectors. Meanwhile, the O&G sector could stay attractive with higher capex
spending from Petronas in 2024.
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