Positive Trend Remains Intact

The FBM KLCI rebounded after a 3-day pullback amid buying support in the Banking
and Utilities segments. Meanwhile, the US stock markets ended stronger led by the
chipmakers fuelled by optimism around the Artificial Intelligence theme; S&P 500 hit
fresh record highs after 2 years. This rally was followed by TSMC commenting that
the outlook is encouraging with the booming demand for high-end chips used in AI.
Currently the US 10-year Treasury yield stood at 4.126%, while the probability of a
rate cut is declining. On the commodity markets, the Brent oil price continues to
traded sideways, ranging around US78-79/bbl, despite the ongoing tension in the
Middle East.

Sectors focus: With the strong sustaining rally in the US, we expect buying interest
to build up on the local exchange within the Technology sector. Also, we expect the
small cap and lower liners to see bargain hunting activities in the near term after a
few rounds of limit-down situations last week. The focus will be on investment
catalysts such as the revival of KL-SG HSR mega projects, rising focus on the Johorregion
theme as well as easing requirements of MM2H going forward. Thus, traders
should focus on the Construction, Property and Building Material segments.

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