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.

The FBM KLCI booked marginal gains after enduring a volatile session following the softer CPI data for Malaysia in April 2023. In light of the brighter outlook of US debt-ceiling deal, bargain hunting activities may emerge on the local bourse, tracking the rallies on Wall Street last Friday. Investors may also monitor Malaysia’s and US S&P Global Manufacturing PMI, as well as US unemployment rate this week.

The FBM KLCI remained subdued on the back of persisted selling pressure in the banking and plantation heavyweights. We believe bargain hunting activities may emerge on the local bourse as the US economy showed no signs of recession following the release of higher-than-expected GDP data for 1Q23. Meanwhile, Malaysia’s inflation rate will be in focus today.

The FBM KLCI sank for the third straight session amidst broad-based selloff, dragged by persisted selling momentum in selected banking, plantation, and health care heavyweights. The longer-than-expected negotiation on the deal to raise the US debt ceiling may continue to stoke worries on both the local and regional markets. Nevertheless, bargain hunting activities may emerge on counters with brighter outlook amid local earnings season.

The FBM KLCI slid deeper into the red in the afternoon session as investors watched the progress of the US debt ceiling talk. We believe investors may remain jittery as the debt ceiling discussions appeared to yield little progress. Do note that Janet Yellen commented that the “hard deadline” for raising the debt ceiling will be on 1st of June. Meanwhile, investors may focus on fundamentally solid companies amid the earnings season on the local bourse.

The FBM KLCI closed lower as the market sentiment was affected by the political developments ahead of the state elections. Meanwhile, Wall Street ended on a mixed note amid the ongoing debt ceiling negotiations. However, with the resumption of debt ceiling talks in the US, we expect the market sentiment to improve at least for the near term. Also, the FBM KLCI rebalancing activities will be commencing soon and may impact the volatility of the heavyweights.

The FBM KLCI ended marginally higher on the back of final-hour bargain hunting activities. On the global front, investors may remain cautious despite the Fed Chair Jerome Powell’s comment on less-aggressive interest rate hike, as worries surfaced following a pause on debt ceiling negotiations. Meanwhile, all eyes will be on the US FOMC Minutes as well as Malaysia’s inflation rate this week.

The FBM KLCI logged gains in tandem with regional peers, buoyed by selected banking and consumer heavyweights. With global sentiment turning positive biased despite the ongoing debt-ceiling talks, we believe that might boost investors’ risk appetite on the local front. Meanwhile, the earnings season will still be on the center stage.