The FBM KLCI rebounded from the intraday low and closed above the 1,450 level last Friday. However, Wall Street continues to stay in the negative region for the fourth session with the expectation of slightly hawkish tone from the Fed, coupled with the concern over a government shutdown in the US. We believe the selling pressure may spillover to stocks on the local front. Nevertheless, we opine that the downside risk should be limited as investors may focus on the NETR and NIMP blueprints, as well as the Budget 2024 in the upcoming month. Commodities wise, the Brent crude oil has continued retraced from the recent high and traded below the USD93/bbl level, while the CPO prices extended its pullback formation below the RM3,700/MT level.

The FBM KLCI traded in the negative region at the end of the session in tandem with the regional benchmark performances. Also, Wall Street has dropped significantly with the Fed’s tone turning more hawkish in the recent FOMC meeting. Besides, investors were concerned that a government shutdown may provide downside risk to the 4Q US GDP. Hence, with the sentiment turning negative, it is likely to spillover towards stocks on the local front. However, we opine that the domestic catalysts such as the NETR and NIMP, coupled with the upcoming Budget 2024 will provide buying support within a certain sector at least for the near term. Commodities wise, the Brent crude oil has continued retraced from the recent high and traded around the USD93/bbl level, while the CPO prices extended its pullback formation below the RM3,700/MT level.

The FBM KLCI has ended lower for the third trading day prior to the FOMC meeting. Given the tone from the Fed has turned mildly hawkish, signalling that the Fed may potentially hike the interest rates in the next few meetings, the market is likely to take it negatively and selling pressure may persist within the stock market. Nevertheless, we believe thematic buying support should pick up on the back of domestic driven catalysts such as the NETR and NIMP blueprints. Commodities wise, the Brent crude oil has continued retraced from the recent high and currently below the USD94/bbl level, while the CPO prices are still rangebound along RM3,700-RM3,800/MT level.

The FBM KLCI may trade in a sideways tone as investors are likely to stay on the sidelines ahead of the FOMC meeting. For the FOMC meeting, we expect the Fed to maintain the interest rate direction this round and the rest of 2023 given the broad trend of the inflation data has declined. Although the negative performance on Wall Street could spillover towards the local front, the buying support could emerge within selected sectors as the market may focus on the blueprints such as the NETR and NIMP for trading opportunities. Also, we believe traders will start positioning themselves ahead of the Budget 2024. Commodities wise, the Brent crude oil has continued its uptrend move above USD94/bbl level, but formed an inverted hammer candle, while the CPO prices are still hovering below the RM3,800/MT level.

The FBM KLCI had turned slightly lower after the quadruple witching day last week, we understand that the Wall Street also trended sideways ahead of the FOMC meeting. Given the external events such as the FOMC will only be concluded tomorrow, we expect trading activities may slow down for the session on the local front, while the attention may be shifted towards the domestic catalysts, such as the NETR, NIMP as well as the recent MOUs that were signed over the weekend.

The FBM KLCI gained momentum on the quadruple witching day in line with the performance of the regional stock markets. Meanwhile, the renewed concerns over the interest rate direction have resurfaced on Wall Street, but we opine that the Fed may keep the interest rate unchanged at least for the next FOMC meeting which will be taking place on the 19-20th of September. Despite Wall Street ending weaker last Friday, we think overall sentiment will remain positive on the local bourse given the 3 MOUs worth a total of RM19.84bn were signed with China companies over the weekend.

The FBM KLCI closed lower for the session, bucking most of the regional indices. Wall Street ended on a positive note with the August core PPI data came in within expectations. Hence, the traders could be shrugging off the concerns that the Fed will increase the interest rate at least for the near future. Do note that the next FOMC meeting will be taking place on the 19-20th of September. Meanwhile, the listing of Softbank’s Arm Holdings has lifted the overall sentiment on the technology sector. Given the removal of recent uncertainty in the markets, we expect buying interest to spillover to stocks on the Bursa Exchange.

The FBM KLCI ended flat but bargain hunting activities were obvious as the index rebounded off significant support zones. Meanwhile, Wall Street trended mostly higher within the technology sector despite the CPI increased for the month of August (above consensus expectation). We believe investors will watch out for the US PPI data that will be released today for more clues on the direction of the Fed going forward. Do note that the Fed’s FOMC meeting will be held on 19-20th of September.