Overall Sentiment Still Positive

The FBM KLCI ended on a positive tone last week as the results released from YTLrelated
were fairly above market’s expectations, translating to further buying support
in the Utilities sector. Meanwhile, the US stock market traded mixed for the session
as the Technology sector took a breather following Nvidia’s results. Several events
that the market may be monitoring this week include (i) US GDP, (ii) Core PCE, (iii)
unemployment claims and (iv) US Manufacturing PMI data. Closer to home, buying
interest should be sustained, following last week’s momentum as we enter the fullblown
corporate earnings season this week. On the commodity market, the Brent oil
price traded around USD81/bbl.

Sectors focus: Still, the traders may continue to chase into the Utilities sector as
YTLs are deemed attractive in terms of their valuations. Meanwhile, we noticed the
Technology sector’s results were slightly positive last week, and we believe it may
turn out stronger from 2Q onwards. Besides, we expect strong set results from TM
may provide support towards the Telco sector. We opine that there might be more
earnings surprises from the Consumer and O&G sectors on the back of normalising
costs and firmer crude oil price, respectively.

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