Positive Trend To Sustain After Core PCE Data

The FBM KLCI rebounded on the back of MSCI rebalancing activities and most of
the banking heavyweights traded positively for the session. On Wall Street, the US
stock markets ended on a firmer note as Core PCE data came in within expectation
and fell 2.8% YoY, translating to a 4th month winning streak in the US stock markets.
We believe the overall sentiment may stay positive as the Core PCE data may signal
earlier than expected rate cut from the Fed. On the commodity market, the Brent oil
price turned slightly lower but supported above the USD80/bbl level amid ongoing
geopolitical tensions, while secured above the USD2,040 level yesterday.

Sectors focus: Given the Core PCE data came in within expectation, the buying
support may emerge within the local market. Overall, the Technology sector’s
earnings have seen recovering and the downside risk could be limited, while buying
interest could pick up going forward. We like the Packaging segment as both the
PPHB and MASTER financial results were growing and likely to see further buying
interest within the sector. Meanwhile, the poultry sector could see stronger trading
interest as PWF released stellar RM25.6m 4Q23 earnings.

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