The FBM KLCI ended on a positive note last Friday amid the return of foreign funds which noted gains accelerated on the banking heavyweights. However, we believe the key index may succumb to mild profit taking activities following the overnight pullback on Wall Street. Nevertheless, the broader market may stay positive-bias over the near term as it has dropped significantly lower over the past 2 weeks into the oversold region. This week, investors will be watching closely on the US Fed’s interest rate decision.

The FBM KLCI propelled on the back of selected banking and industrial products & services heavyweights amid broad-based bargain hunting activities. The uptrend moves on Wall Street overnight signalled that the buying support on the local bourse should remain intact.

The FBM KLCI climbed in line with the broadly positive sentiment from the regional markets. Investors should see a positive-bias trading tone on the local bourse following the extension of rebound on Wall Street, supported by bargain hunting activities on significantly oversold stocks over the past few weeks.

The FBM KLCI booked marginal losses as investors remained on the sidelines while waiting for fresh market leads. Nevertheless, sentiment on the local bourse should improve after mild profit taking activities yesterday, tracking the sharp rally on Wall Street overnight buoyed by strong corporate earnings.

The FBM KLCI managed to rebound and recouped its losses from the past week, riding high on upbeat performances from the regional markets and Wall Street overnight. With foreign investors turning net buyers (5-day net foreign fund inflow: RM53.7m), traders may expect a mild extension of the rebound on the severely oversold local equities market. Nevertheless, gains might be capped by challenging business operating environment on the back of heightened inflation pressure.

The FBM KLCI ended the week with marginal losses as quick profit taking activities emerged on selected heavyweights. While the local bourse may be poised for a rebound following the strong gains on Wall Street, we believe recession fears will continue to permeate investors’ sentiment in the near term. Meanwhile, investors may be watching the European Central Bank’s meeting and Malaysia’s inflation data later this week.

The FBM KLCI bounced off 52-week low to outperform the mixed regional markets, supported by bargain hunting activities in selected index heavyweights. Nevertheless, we believe the local bourse may remain sour over the near term, taking cue from the mixed sentiment on Wall Street amid dismal earnings from banks, as well as the selloff in banking stocks in China which spread over from the developer stocks.

The FBM KLCI slipped as rebound attempt stalled amid broad-based selldown and negative cue from Wall Street. Investors are beset by mounting recession fears following US economic release which saw inflation roared 9.1% YoY. Meanwhile, Indonesia’s temporary freeze on sending migrant workers to Malaysia may prolong the labour shortages across all sectors, particularly in the plantation and manufacturing sector.