The FBM KLCI outperformed the regional markets on the back of final-hour bargain hunting activities as well as the inflow from foreign investors. While Wall Street notched higher overnight, we believe the global sentiment could remain shaky in view of the strong retail data, which might indicate potential interest rate hikes by the US Fed going forward. However, closer to home, investors might be relatively positive prior to the earnings season and the re-tabling of Budget 2023.

The FBM KLCI sustained its gains from the previous session prior to the release of the US consumer price index (CPI) data for January 2023. However, following a mixed performance on Wall Street due to a hotter-than-expected inflation, we believe the global sentiment will remain tepid at least for the near term while looking for fresh catalysts. Closer to home, investors may continue to focus on earnings reporting season as well as the re-tabling of Budget 2023.

Final hour buying support lifted the FBM KLCI into the positive territory amidst bearish regional markets sentiment. With a broad-based rebound on Wall Street overnight, the market could be positioning ahead of the release of the US CPI inflation report, where most of the traders could be anticipating a cooling inflation. Hence, we believe the bullish sentiment is likely to spill over to the regional markets as well as the local bourse especially on the technology sector.

The FBM KLCI recovered from its three-session losses on bargain hunting activities, especially in banking and energy heavyweights. Global sentiment remained mixed as investors are likely to pay attention to the US inflation rate which will be released this week; this may determine the direction of the interest rate going forward. Meanwhile, the local bourse should focus on the earnings reporting season as well as the re-tabling of Budget 2023.

The FBM KLCI declined for the third straight session on the back of weakness in telecommunications and transportations & logistics heavyweights. However, we believe the key index is poised for a mild rebound as investors may hunt for bargains prior to the reporting season, but the upside might be capped amidst the jittery global sentiment. Meanwhile, investors will be watching Malaysia’s 4Q2022 GDP data which will be released today.

The FBM KLCI trended lower amid selling pressure in banking and industrial products & services heavyweights. Meanwhile, the local bourse continued to see net selling activities from foreign investors (5-day cumulative net selling: - RM407.0m). While the bargain hunting activities may emerge following a two-day selldown, overall market undertone will remain cautious amid the overnight negative performance on Wall Street amid the persisted worries over the US interest rate hikes.

The FBM KLCI slipped deeper into the negative territory throughout the session amid renewed selling pressure. However, following yesterday’s broad-based selldown we believe the bargain hunting activities are likely to emerge, in view of the upbeat cue from Wall Street overnight after the Fed Chair Jerome Powell indicated that the inflation could be subsiding.

The FBM KLCI eked out small gains on the back of final hour buying interest. However, the global sentiment remained uncertain in view of the Nasdaq-led decline on Wall Street following the robust January employment figures which has raised concerns over potential more hawkish tone from the US Fed. Meanwhile, on the local front, investors could be focusing on the upcoming earning season and the re-tabling of Budget 2023 on the 24th of February.