The FBM KLCI ended marginally higher for the session, but the traders may continue to stay cautious throughout this week. With the Wall Street and regional benchmark indices taken a beating yesterday, we expect selling pressure to emerge on the local front. Also, as we are heading into the Budget 2024 period, investors may position themselves ahead of this event. Meanwhile, the elevated inflationary pressure, rising US Treasury yields as well as expectations of another possible interest rate hike move by the Federal Reserves, downward pressure on stock markets may continue. Commodities wise, the Brent crude oil hovered around USD90/bbl level amid rising dollar, while the CPO prices traded below RM3,700/MT level.

The FBM KLCI has extended its pullback below the 1,420 level amid broad-based profit taking activities, but accompanied by a softer overall trading value. Meanwhile, the US stock markets traded mixed led by the technology stocks despite an uptick in 10-year Treasury yield hitting the 16-year high. Also, we think the sentiment was affected by the US Manufacturing PMI data which came in below 50, indicating that the sector continues to contract. On the local front, we believe the market may rebound on the back of bargain hunting activities. Commodities wise, the Brent crude oil tumbled below USD93/bbl level amid rising dollar, while the CPO prices traded below RM3,800/MT level.

The FBM KLCI has declined significantly lower on the final day of the September month amid selling pressure in the banking heavyweights. Meanwhile, Wall Street traded mixed prior to the passing of a short-term bill just 3 hours before the deadline; averting a shutdown for another 45 days. Thus, we expect the overall stock markets to head higher at least for the near term. Closer to home, we opine that the positive developments within the NETR, NIMP as well as the upcoming Budget 2024 may provide trading opportunities on the local exchange. Commodities wise, the Brent crude oil traded below the USD93/bbl level, while the CPO prices revisited above the RM3,800/MT level, before forming an inverted hammer below RM3,800.

The FBM KLCI traded in the negative territory prior to the public holiday, while investors were focusing on the Energy sector amid the rebound in Brent oil prices. In the US stock markets, buying interest emerged within Nasdaq or growth stocks after the 10-year US Treasury yield dropped from its 15-year high. Also, traders will be looking at the Personal Consumption Expenditure that will be released later tonight for more clues from the Fed on its tone going forward. Besides, we believe the upside on Wall Street may be limited as the US government is facing a shutdown if the US Congress is not able to pass a funding plan by end-Sep. Commodities wise, the Brent crude oil traded on a volatile manner within the range of USD93-95/bbl level, while the CPO prices rebounded strongly near the RM3,800/MT level.

The FBM KLCI had a slight rebound at the end of the session as bargain hunting activities resurfaced. Meanwhile, Wall Street was significantly lower as investors were concerned that the elevated interest rate environment could dampen the economic outlook. Also, the 10-year US Treasury yield climbed to a fresh 16-year high. With the Aug new home sales and US Sep consumer confidence index came in below estimates, we believe the overall market conditions may persist in the negative tone, and likely to spill over to stocks on the local bourse. Commodities wise, the Brent crude oil has rebounded and traded near the USD94/bbl level, while the CPO prices were trading near the RM3,700/MT level.

The FBM KLCI ended lower in tandem with the negative performance from the overnight US stock markets, coupled with heavier profit taking activities within the index heavyweights. Despite Wall Street snapped its 4-day losing streak, we believe traders may remain cautious ahead of the release of the (i) US GDP data (28-Sep), (ii) Jerome Powell speech (29-Sep), (iii) US Core PCE data (29-Sep) as well as (iv) China PMI manufacturing data. Nevertheless, the downside risk should be limited on our local front with the focus on the upcoming Budget 2024. Commodities wise, the Brent crude oil has continued to trade around the USD93/bbl level, while the CPO prices remained below the RM3,700/MT level.

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.