The FBM KLCI edged lower as investors remained cautious awaiting the Fed Chairman Jerome Powell’s comment prior to the congressional testimony; foreign funds continued its outflow for another session, with cumulative 5-day net selling standing at -RM343.2m. Investors’ risk off mode prior to the congressional testimony in the US, coupled with the Bank Negara Malaysia’s interest rate decision may drag the local bourse into a range bound trading environment.

The FBM KLCI settled lower on Friday as profit taking activities re-surfaced, bucking the positive performances across regional markets. Global risk appetite improved, but still awaiting comments from the US Fed officials which will provide clues for the future rate hike directions during congressional testimony. Nevertheless, the market has priced in the solid ISM manufacturing data, which should contribute to at least a positive short term trading environment. Meanwhile, investors may keep an eye on Bank Negara Malaysia’s interest rate decision this week.

The FBM KLCI shook off early losses and rebounded from the 1,450 immediate support level, as bargain hunting activities kicked in. Given the Wall Street accelerated into the green territory overnight as one of the Federal Reserve official’s remarks were more dovish on interest rate direction, we believe the relief rally could spill over to the local bourse. Nevertheless, we believe the upside of the market may be limited until the conclusion of the FOMC meeting this month.

The FBM KLCI kicked off March 2023 with losses given the lack-of-fresh-catalyst environment. Regional markets, however, traded in a positive bias tone after stronger-than-expected manufacturing data from China suggesting that the reopening since January is boding well for the economic recovery; while Wall Street stocks headed south as inflation data from Germany indicate that the global interest rate hikes may continue to stay elevated. Despite the global uncertainties, we believe the local bourse may be due for a rebound.

The FBM KLCI registered a mild loss, extending its declining streak for the fifth straight session amid pervasive external negative sentiment. On the global front, Wall Street wobbled into the negative territory on the final day of February 2023 as consumer confidence came in below expectation. Also, as the outlook from the Fed remains hawkish, the upside on the global stocks market could be limited for now. Meanwhile, we reckon the local bourse may trade in a cautious tone amid the tail end of the earnings season as well as the lack of fresh catalysts environment.

The FBM KLCI inched lower after hovering mostly in the red, with selling pressure seen in other sectors outweighing gains in the banking heavyweights. The rebound attempt on Wall Street overnight may trigger the regional markets to recover some grounds. Meanwhile, investors are awaiting the consumer confidence data and Chicago PMI to gauge the US Fed’s tone in interest rate direction. We reckon cautious sentiment will prevail on the local front with foreign investors turning net sellers, but bargain hunting may be noticed.

The FBM KLCI logged marginal losses after hovering mostly in the negative territory, taking cue from the negative biased regional markets. Following a sharp selldown on Wall Street in the previous week, we reckon the regional markets and the local bourse may stay rocky while investors could be looking out for fresh catalysts. Meanwhile, we believe the downside risk could be limited following the revised Budget 2023 as investors may trade in sectors that will benefit from it.

Intensified selling pressure dragged the FBM KLCI into the negative territory yesterday, taking cues from the regional losses. While the Wall Street staged a rebound overnight signalled the emergence of the positive sentiment, volatility might not abate over the near term without slowing down the interest rate upcycle. Back home, the re-tabling of Malaysia Budget 2023 will be taking the centre stage and investors may also keep an eye on Malaysia’s inflation rate today.