The FBM KLCI surged for the fourth session and once again crossed and closed above the 1,500 psychological level. We believe the overall sentiment on the local front may stay bullish in tandem with the Hang Seng Index spiking above the 16,000 level following the news where China ramps up stimulus and PBOC announces policy easing measures. Also, the US stock markets continued its bullish tone following the release of better-than-expected GDP data. We believe the market will be focusing on corporate earnings and next week’s FOMC meeting. On the commodity markets, Brent oil headed above USD80/bbl mark as EIA indicated that the US inventories were declining. 

Sectors focus: Given the solid close on Hong Kong and the US markets, we believe buying support may persist on the local front, especially within the Technology sector. Meanwhile, the news on BLAND, IJM, MRCB and KTMB to join forces to bid for the KL-SG HSR job may provide support towards the Construction, Building Material and Property sectors. Besides, we believe the Transportation & Logistics sector may see trading opportunities with the ongoing tension in the Red Sea.