Mildly Positive Trading Activities Expected

The FBM KLCI closed flat after traded positively towards an intraday high position
around the 1,521 level led by selling pressure in Genting. Meanwhile, the US stock
markets surged for another session as the S&P500 hit 5,000 point milestone as
roughly in-line, while the unemployment claims came in slightly below expectations.
We believe the market is focusing on the solid earnings season which boosted the
overall sentiment recently offsetting the delay in the expected interest rate cuts by
the Fed. Given this scenario, Wall Street may be supported in the elevated
environment at least for the near term. On the commodity markets, Brent oil price
traded firmly above USD80/bbl amid signs of ongoing tension in the Middle East as
Israel rejected a cease-fire offer from Hamas.

Sectors focus: Closer to home, we expect buying support to be seen within the
Technology sector in tandem with Wall Street. Also, we expect the Construction and
Utilities sectors to extend its upward move with the buying support yesterday despite
the slowdown in trading activities ahead of Chinese New Year break. We opine that
the trading catalyst may revolve around the (i) potential revival of KL-SG HSR and (ii)
data centre investment in Malaysia for the near term.

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