The FBM KLCI traded in a volatile manner around the 1,500 psychological level as
the overall market sentiment was spooked by a few of the counters that limit-down
throughout the session. Meanwhile, the US stock markets ended mostly lower on the
back of rising US Treasury yield following the comments from one of the Fed’s
officials who commented that the Fed should not rush towards cutting the interest
rates. Closer to home, we believe the trading tone would stay fairly negative as we
expect some of the companies that have traded significantly lower could bring more
margin calls, thus affecting the overall market sentiment. On the commodity
markets, the Brent oil price continues to trade sideways within the range of USD76-
79/bbl.

Sectors focus: Despite the high volatility environment in selected counters, we still
expect the overall theme unchanged for 2024, where traders should continue to
focus on the potential revival of the KL-SG HSR project, Johor-theme investments as
well as the easing of MM2H requirements. We expect the fundamentally solid
companies that are within the Construction, Property, Building Material and
Renewable Energy to benefit under this scenario. Also, we advocate traders to focus
on solid fundamental companies in order to withstand the current volatility.