The FBM KLCI rebounded for the third day with the support seen in mostly Banking
heavyweights. Meanwhile, on Wall Street, S&P500 and Nasdaq headed higher, but
the Dow slipped amid a mixed bag of earnings. Also, traders will be awaiting results
from the “Magnificent 7” to determine the direction of the US stock markets. Other
key data that investors may monitor will include the (i) US GDP, (ii) core PCE Index
and (iii) US PMI. Currently, the dollar index and the US 10-year Treasury yield are
slightly positive. On the commodity markets, Brent oil traded within a narrow range
despite the ongoing tension in the Middle East and we expect a positive bias view
as extreme weather conditions in the US may limit the oil supplies.

Sectors focus: With the mixed bag of earnings from Wall Street, profit taking
activities may emerge after a 3-day rally on the local exchange. However, we expect
the trading focus to remain within the ongoing catalysts like (i) KL-SG HSR, (ii) easing
requirements of MM2h as well as the focus in the Johor-region investments. Also,
the rising tension in the Red Sea could lift the shipping rates and contribute to
potential trading opportunities within the Transportation & Logistics sector.