As the market has turned cautious in the US stock markets, we expect Bursa exchange to reciprocate and trading momentum may decline throughout the session. Nevertheless, we opine that the downside risk could be limited with the uplifting of Covid-19 restrictions in selected region in China.

The FBM KLCI rebounded in tandem with the regional bourses as bargain hunting activities emerged in the mid-day trade. With the strong surge on Wall Street, the positive sentiment may spillover to stocks on the local exchange; buying interest has returned following the US Fed Chair’s speech on scaling back the pace of interest rate hikes as well as the easing restrictions in selected region in China. Meanwhile, on the local front, investors may monitor the formation of the Cabinet and the re-tabling of Budget 2023.

Following the conclusive GE15 outcome, we continued to observe that the FBM KLCI taking a mild breather amid profit taking activities from selected glove heavyweights. Also, with the Wall Street ended mixed, the uncertain sentiment may spillover towards the local front. Nevertheless, traders could focus on the ongoing reporting season to uncover undervalued gems. Meanwhile, the market is still waiting for the formation of the Cabinet and it may provide clues for Malaysia’s growth going forward.

The FBM KLCI retreated on Friday as broad-based profit taking activities emerged ahead of the long weekend. The global stock markets started the week largely in a weaker note as protest over China’s strict Covid-19 restriction stoked worries over the global financial recovery. The local bourse may follow suit as buying momentum may slow down moving, while focusing on the ongoing earnings season. Meanwhile, investors may watch the formation of the cabinet in the near future as well as the re-tabling of Budget 2023.

The FBM KLCI witnessed a strong rally after the unity government is formed with PH being the largest party in the alliance and PH’s Chairman Datuk Seri Anwar Ibrahim is being appointed as Malaysia’s 10th Prime Minister. Following the conclusive outcome of the GE15, foreign investors turned net buyer, snapping a 6-day outflow streak and a stronger MYR, we believe the local bourse will continue its uptrend move amid rising investors’ confidence. Besides, the FOMC meeting minutes that saw some of the Fed’s official turning less hawkish may be perceived as positive to the stock markets.

The FBM KLCI eked out small gains in a volatile session amid mixed sentiment due to the fluid situation on the political scene. Optimism surrounding the slowdown in rate hikes indicated in the FOMC minutes may spread across the regional markets. Given the UMNO Supreme Council has given the support to a unity government ensuring the stability of the country, we believe the market may turn more positive. Meanwhile, investors could shift their focus from politics to Malaysia’s inflation rate and the on-going reporting season.

The FBM KLCI slipped for another session with persisted foreign outflow as investors remained focused on the pending selection of Malaysia’s 10th Prime Minister. Meanwhile, Wall Street advanced overnight on the back of solid company earnings the positive momentum, this positive momentum could spill over to the regional markets. However, we believe the upside on the local front could be capped due to the fluid developments in the political scene, and greater clarity on that is required to boost investors’ confidence.

The FBM KLCI reversed lower as investors await the formation of the new government; foreign investors remained as net seller for the fourth session. The local bourse may stay in the consolidation mode with the focus on the political scene while eyeing the nomination of the next PM candidate. Meanwhile, the global sentiment was dampened by worries over global growth slowdown after China imposed a stricter Covid-19 curbs.