The FBM KLCI slipped further into the negative territory for the second straight session. However, as Wall Street charged higher prior to the US Fed interest rate decision next week, investors could be anticipating a less-hawkish tone by the US Fed after a cooling labour market data. Also, we have noticed the Hang Seng Futures have turned more positive, breaking above the SMA200 zone, that positive sentiment could spillover towards stocks on the local front and pushing the FBMKLCI higher in the near term.

Selling interest continued in the FBM KLCI with anticipation over the slower economic recovery in China in view of its higher-than-expected decline in export data for the period of May 2023. Hence, the concerns over the global economic recovery, coupled with a few key economic data that will be released next week such as the US CPI may keep investors in a cautious mode. Nevertheless, we still expect the current level of FBM KLCI may attract bargain hunting activities from investors as values could be emerging.

The FBM KLCI bounced from losses to end on a positive note as bargain hunting activities emerged in the final trading hour on selected plantation and Petronas related heavyweights. Meanwhile, on Wall Street, both the S&P 500 and Nasdaq are still positive biased, charging towards their respective year-to-date highs, we believe the positive sentiment may spill over to the local bourse. Nevertheless, investors may remain on the sidelines, while awaiting the US Fed interest rate decision next week.

The FBM KLCI remained bearish as investors selling pressure in banking and selected consumer heavyweights, while investors piled into small and mid-cap stocks. We deem the pullback on Wall Street overnight as a healthy consolidation, while the local bourse may track regional markets’ uptrend move and bargain hunting activities may emerge. Investors may monitor Japan’s and Eurozone’s GDP, as well as China’s inflation rate to gauge the aggressiveness of global interest rate hikes.

The FBM KLCI remained under pressure amid persistent cautious sentiment without significant fresh catalyst. Nevertheless, following the passing of US debt ceiling bill and the subsequent rebound on Wall Street, bargain hunting activities may emerge on the local bourse. Still, cautiousness may prevail with the spotlight turning towards the release of US jobs data that may dictate the interest rate direction, Investors may prefer stocks with defensive characteristics towards the end of earnings season.

The FBM KLCI slumped for the second session along with regional markets as investors took profit after the contraction in China’s factory activity dampened hopes for global economic recovery. Investors may continue to watch the debate for US debt ceiling while taking a cautious trading approach. At the same time, the labour market tightness and stubbornly high recent inflation data may continue to sap trading interest in the equities market.

The FBM KLCI drifted below the key 1,400 level as investors took profit ahead of the passing of US debt ceiling deal. Whilst global sentiment remained mixed, we believe bargain hunting activities may emerge on the local front in undervalued stocks. Meanwhile, the renewable energy theme may come into investors’ focus as the government target to roll out its Energy Transition Roadmap, as well as to reveal the renewable energy export guidelines in June.

The FBM KLCI closed with minor gains as bargain hunting activities emerged amid easing worries following the tentative deal formed over US debt ceiling. Investors may see further relief in the market in anticipation of the lifting of US debt ceiling this weekend. Meanwhile, higher-than-expected US consumer spending which suggested the economy remains resilient has kept the Brent crude oil price on a recovery move, hovering above USD77 per barrel. Meanwhile, the CPO price hovered above RM3,500.