The FBM KLCI turned sideways after the recent consolidation breakout. We believe
the overall market tone is still positive and likely to head higher after the earnings
season. Meanwhile, Wall Street rebounded significantly after the sharp sell down, led
mainly by the technology sector. Traders will be monitoring the retail sales and the
US PPI data that will be released over the next two days. Although the inflation data
may spike, the market will be focusing on the ongoing earnings season to look for
trading opportunities. On the commodity market, the Brent oil price traded slightly
lower as EIA reported the US inventories surged by 12 million barrels last week,
above consensus estimates of 2.6 million.

Sectors focus: Key sectors that investors should be focusing on will be the (i)
Construction, (ii) Property, (iii) Utilities and (iv) Renewable Energy given the trading
themes revolving around the mega infrastructure projects as well as the data centre
investments in Malaysia. Also, we like Consumer related, specifically the poultry
sector in anticipation of stronger quarterly results amid normalising costs and higher
demand. Besides, the Transportation & Logistics sector may benefit from the
ongoing Middle East tensions.