The FBM KLCI took another dive amid continuous profit-taking activities as investors digested the strong gains in the previous four sessions. Given the market treated Nancy Pelosi’s visit to Taiwan as non event, we believe the sentiment will recover along with the regional peers following the sharp gains in the US triggered by robust economic data and stronger corporate earnings.

The FBM KLCI slipped on Monday alongside with the regional bourses as profit-taking activities emerged following a negative cue from Wall Street. The global markets may see an uneven recovery as investors weighed the escalating US-China tension and some hawkish comments from several Fed officials, which cause a surge in bond yields as investors priced in more interest rate hike. Nevertheless, we believe continuous buying from the foreign funds will support the local bourse.

The FBM KLCI stayed on an upbeat note along with most of the regional peers as the key index crossed above the psychological 1,500 level. Whilst profit taking activities may occur, digesting the recent gains, we continue to expect a relatively positive market undertone moving forward as investors could be shrugging off the concerns over aggressive interest rate hikes in the US.

The FBM KLCI eked out marginal gains on Friday, extending its gains for a third straight session supported by persistent buying from foreign funds. We believe the market undertone will improve as investors may expect a slower pace of interest rate hikes in the US moving forward. Nevertheless, inflation is likely to remain high as crude oil price is still elevated above the USD103 per barrel mark on the back of tight supply situation.

The FBM KLCI rallied in a constructive Thursday session in tandem with the regional peers, taking cue from the strong gains on Wall Street. We believe the narrative that the US Fed will slow down the pace of interest rate hikes will continue to send positive signal to the regional and local bourses despite the contraction of GDP in the US. Meanwhile, Indonesia’s decision to lift its restrictions on the entry of its workforce into Malaysia starting 1st August 2022 should benefit the manufacturing and plantation sectors in Malaysia.

The FBM KLCI reversed earlier losses to end in the positive territory prior to the US Fed’s interest rate decision as concerns over rate hikes have been priced in. We believe the recent rebound should continue as the comments by the US Fed Chairman Jerome Powell have eased investors’ concerns over the interest rate hike outlook going forward. The positive momentum on Wall Street is likely to spill over to the regional and local bourses.

The FBM KLCI slipped after four straight session gains as investors braced for a possible US interest rate hike. Also, as the 2Q22 US GDP data will be released on the 28th of July, investors should prepare for more volatility over the near term, as recession fears may return as the US economy contracted in 1Q. Hence, stocks with defensive characteristics may be in focus.

The FBM KLCI outperformed the regional peers as the key index gained momentum in the final trading hour, supported by influx of foreign funds. Although the market sentiment has been improving over the past few sessions, we reckon that the investors may remain cautious ahead of the US Fed’s interest rate decision and could take a breather in view of the mixed performances on Wall Street overnight.