The FBM KLCI rebounded as the market sentiment was buoyed by the upbeat performances on Wall Street overnight following the less hawkish tone on the interest rate direction from the Fed as the CPI numbers in the recent months have been declining. Given Wall Street is in a relief rally environment, we believe the global sentiment may turn positive and buying interest may spillover to the stocks on the local front. In the meantime, we believe investors will be positioning themselves for the upcoming reporting season as well as the re-tabling of Budget 2023 on 24th of Feb.

The FBM KLCI took a breather before heading into the Federal Territory Day holiday as investors stayed cautious prior to the US Fed’s FOMC meeting. Meanwhile, the quarter-point rate hike from the Fed is within the market’s expectation and it has reversed the negative mood on Wall Street to close in the positive zone; this might be suggesting that the market has priced in the interest rate impact and acknowledging that the inflationary pressure has been easing. Hence, we believe the positive sentiment on both Wall Street and the regional markets will spill over to the local bourse.

Despite the buying support within the banking heavyweights, the FBM KLCI continues to end marginally below the key 1,500 level. However, we noticed the FBM Small Cap index has been trending positively over the past weeks; supported by the broad market recovery after the reopening of China’s border theme. Nevertheless, global equities may endure a shaky week as investors turn cautious ahead of the FOMC meeting and a series of economic data in the US.

The FBM KLCI has ended marginally below 1,500 dragged by the weakness on the banking sector as BNM maintained the OPR at 2.75%. However, with the positive sentiment from Wall Street, we believe the buying interest may spillover to the broader market, providing an upside towards the lower liners, especially the technology sector. Global stock markets could see further recovery on the back of decent US GDP data coupled with the recovery theme from China, which may boost the recovery further going forward.

Despite the weakness as of late, we expect the key index to re-test the 1,500 level, taking cue from the positive sentiment on Wall Street overnight. The lower liners are staying firm amid strong buying interest, but we caution that the overbought position in most of the stocks across Bursa Malaysia may attract quick profit taking over the foreseeable future. Globally, the stronger-than-expected economic data in the US may continue to lend support for further recovery on Wall Street

The FBM KLCI failed to build onto the positive momentum from the pre-CNY moves as the key index lost ground on quick profit taking activities. Still, we are banking on the recovery theme from China which will boost the FBM KLCI above the 1,500 level, while the lower liners may continue to capitalise on the improved trading environment and enjoy further rotational play. Globally, the focus will shift to the preliminary reading of the US 4Q22 GDP data tonight.

The FBM KLCI took another step higher to close marginally above the 1,500 level. This week, we reckon that the trading activities will be muted amid the holiday-shortened trading week as most investors could still be enjoying the break. Nevertheless, bouts of upsides are to be expected with traders taking further positions in riskier assets following the Bank Negara’s unexpected move to maintain the OPR.

The FBM KLCI eked out marginal gains following the decision by Bank Negara Malaysia to maintain the overnight policy rate (OPR) at 2.75%. Nevertheless, we expect the sideways trend on the local bourse may turn into a negative biased environment prior to the Lunar New Year holiday after Wall Street extended its slide amid increasing concerns on softer economic activities going forward and the expectation of the Fed’s tone to remain hawkish.