The FBM KLCI traded in a rangebound mode throughout the past two weeks as
sentiment was mixed prior to the Chinese New Year break. Meanwhile, the US stock
markets ended on a mixed note with the Dow charged towards a fresh high, but both
S&P500 and Nasdaq declined ahead of the 2 US inflation reports this week, which
could affect the Fed’s policy outcome and the pace of the cut in the Fed funds rate
going forward. Other than CPI and PPI inflation data, the market will be focusing on
the US retail sales and US unemployment claims. On the commodity markets, Brent
oil price maintained above USD80/bbl as another ship attack in the Red Sea was
reported, signalling prevailing risk in the region.

Sectors focus: Overall, we expect the buying support to return after the long break
within the Construction, Property and Utilities sector supported by the trading
catalysts namely (i) potential revival of the KL-SG HSR mega project, (ii) data centre
investment in this region over the near term. Also, the market will be focusing on
earnings where Consumer may provide upside in earnings potential amid cost
normalisation, while the Energy sector may be lifted by healthy Brent oil price.