Positive Sentiment To Return

The FBM KLCI slid marginally after a 3-day winning streak as profit taking emerged,
while the US stock markets closed mixed prior to the release of Nvidia’s results, while
pricing in the Fed’s minutes, where most of the Fed’s officials worried on moving too
quickly to cut rates and inflation might spike again with the ongoing geopolitical
tension. While the elevated interest rates environment may persist, Nvidia’s postmarket
results managed to beat expectations and will be able to support the overall
sentiment at least for the near term. On the local front, we reckon the market
sentiment will stay positive amid the better-than-expected corporate earnings
season. On the commodity market, the Brent oil price headed higher on the back of
ongoing tension in the Middle East region.

Sectors focus: We believe the market may be focusing on Property, Construction
and Building Material as well as O&G sectors following corporate earnings releases
from Sunway-related, Avaland, and Perdana. Meanwhile, we still expect the
Technology to improve further from this point in tandem with the spike in Nvidia after
hours following the release of corporate earnings.

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