The FBM KLCI wrapped up 3Q22 with a downbeat note as prolonged bearish cue from the global markets coupled with continuous selling from foreign investors dragged the key index lower. We believe global market turmoil will likely to continue, stemming from fear over potential recession in view of the elevated inflation rate. However, we expect mild bargain hunting activities to emerge ahead of the Budget 2023 this week.

The FBM KLCI declined below the key 1,400 level as increasing concerns over global recession permeated the local bourse. As Wall Street wiped out its gains from the previous session, we reckon that the local sentiment may remain fragile as investors will adopt a wait-and-see approach amid the rising macroeconomic pressure. Nevertheless, we expect mild buying support on index heavyweights for 3Q window dressing activities and the key index may be supported above 1,400.

The FBM KLCI slid alongside with the regional peers as persistent negative sentiment prevailed and pulled the key index below the 1-year low. However, we believe the local bourse should see decent buying interest after a sharp rally on Wall Street overnight as the surprise policy pivot by the Bank of England should lift the regional sentiment.

The FBM KLCI slipped for another session as the key index succumbed to selling pressure in selected banking heavyweights. However, we believe the local bourse is poised for mild recovery as bargain hunting activities emerged in the previous session. Nevertheless, any rebound may be capped as investors may stay cautious ahead of the potential recession worries.

The FBM KLCI tumbled as the plantation, telecommunication, and banking heavyweights continued its negative tone amid the persisted bearish sentiment on the global front. We observed that the 5-day foreign net selling stood at RM753.9m. With Wall Street sliding deeper into a bear market, we believe the local bourse is likely to witness heightened volatility on the back of worries over the global economic downturn.

The FBM KLCI tumbled as persistent risk-off undertone, coupled with foreign fund outflow (5-day cumulative stood at RM562.5m) led to a broad-based selldown on the local bourse. While the cautious sentiment is likely to continue, we may see milder selling pressure as investors could pick up undervalued stocks and trade ahead of the tabling of the Budget 2023 in October 2022.

The FBM KLCI tumbled on the back of weaker sentiment which caused a selldown globally triggered by the ongoing hawkish tone by the Fed. As investors continued to price in more aggressive interest rate hike going forward, we believe the local bourse is likely to stay cautious and remain downward bias. Meanwhile, investors may watch for Malaysia’s inflation rate to gauge the upcoming OPR outlook by the BNM.

The FBM KLCI slumped, taking cues from the global stock markets prior to the US FOMC meeting. As investors digested the 75-basis point interest rate hikes and the US Fed’s signals more hawkish tone into end-2022, global sentiment should remain tepid at least over the near term. Nevertheless, bargain hunting activities may emerge in selected sectors as traders may shift their focus to the Budget 2023 beneficiaries.