The FBM KLCI continued to trade within a rangebound manner ahead of the Chinese
New Year long weekend break. Meanwhile, Wall Street managed to gain momentum
as the US Treasury yields slipped with investors pushing back the expectation of the
Fed’s first rate cut by 2H24. On the Chinese stocks, we noticed a significant rebound
after Beijing ramped up efforts to put a stall in the falling China and Hong Kong stock
markets. With the rebound in global as well as China and Hong Kong stock markets,
we believe the buying support may emerge this week on our local stock exchange.
On the commodity markets, Brent oil inched higher as EIA expects the oil inventories
to fall in the current quarter on reduced productions from OPEC+ and the US.
Sectors focus: Most of the sectors should be gaining momentum with the focus
hovering within the key themes such as (i) the revival of KL-SG HSR mega
infrastructure projects and (ii) the ongoing Johor-region developments. Also, we
expect the LSS5 announcements may bode well for solar-related EPCC players on
the exchange. We like Consumer and Telco for their defensive characteristics; the
latter may benefit from increased data centres investments in Malaysia.
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