The FBM KLCI maintained its upward tone after a two-day consolidation and we
expect buying support to continue this week. On Wall Street, the overall sentiment
was boosted by stronger-than-expected earnings from META which announced its
first quarterly dividend following robust ad sales in the holiday shopping period. Also,
we like Apple Inc for the release of Vision Pro headgear which may provide the next
phase of growth for the technology space going forward. This week, the market will
monitor the (i) US ISM Services PMI and (ii) unemployment claims data on Thursday.
On the commodity markets, Brent oil fell below USD80/bbl level amid stronger dollar
after US added 353k jobs in January.
Sectors focus: With the bullish tone seen in the US stock markets, we expect buying
interest to emerge within the Technology sector. Given the REIT and Transportation
& Logistic sectors momentum was decent last week, there might be continued
buying support this week; the former could be due to stable OPR at this juncture.
Meanwhile, other trading catalysts such as the (i) potential revival of KL-SG HSR as
well as (ii) Johor-region investments could bode well for the Construction, Property,
Utilities and Building Materials sectors.
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