The FBM KLCI closed marginally higher as final hour buying interest lifted the key index. Nevertheless, we believe sentiment could remain tepid amid downtrend move on Wall Street and regional markets. Meanwhile, concerns over recession persisted against the backdrop of rising global interest rate setting. Commodities wise, crude oil price sank below USD100 per barrel amid concern over weaker demand following China’s stringent move to curb the Covid-19 spread.

The FBM KLCI rebounded on Friday following the back-to-back losing sessions, led by selected banking and industrial products heavyweights; rising regional markets added to the positive sentiment. Nevertheless, we deem the rebound may be shortlived amid rebound in Covid-19 cases in Malaysia, reintroduction of lockdowns in China, as well profit taking activities on Wall Street overnight.

The FBM KLCI extended its decline as the key index was dragged by selling pressure in the banking and industrial products heavyweights. Nevertheless, we believe the overnight rallies on Wall Street, coupled with the China’s stimulus plan should entice buyers to scoop up some shares within the beaten-down stocks at this current juncture. Still, long-term sentiment should remain cautious on the back of heightened inflationary pressure.

The FBM KLCI plummeted as selling pressure in consumer and plantation heavyweights weighed on the key index. Traders should watch closely on the Brent crude oil amid sliding commodity markets as market could be pricing in recession worries and the Brent oil is trading around the USD100 psychological level. While we think the local bourse is set for bargain hunting activities following mildly higher movement from Wall Street, we opine that the upside could be capped amid the falling commodities environment.

The FBM KLCI staged a late-day rebound on the back of mild bargain hunting activities. Nevertheless, we expect investors to stay sidelines amid the heightened inflationary pressure and lack of fresh catalysts environment. Meanwhile, all eyes will be on the monetary policy meeting and BNM’s interest rate decision today.

The FBM KLCI reversed last week’s gains as the key index succumbed to broadbased selling prior to the BNM’s interest rate decision during the Monetary Policy Committee (MPC) meeting; we believe traders may focus on banking stocks for the near term. Given the lacklustre trading and the increase in continuation of net foreign selling, we opine that the local bourse may see selling pressure interspersed with bargain hunting activities in undervalued stocks.

The FBM KLCI outperformed the regional peers as investors picked up beatendown shares, led by the banking and telecommunication & media heavyweights. While late-day rebound lifted Wall Street, we expect volatility to persist on the local bourse as inflationary pressure and recession fears still dominating the market. Investors are likely to stay cautious prior to the Malaysia’s interest rate decision and the US FOMC meeting (later this month).

The FBM KLCI ended 1H2022 in the negative territory as the key index dipped in the final-hour selldown. As Wall Street registering steep decline on the final trading session of 1H2022, we believe the weak sentiment is likely to spill over to the regional markets as well as the local bourse, which has been struggling to find a bottom. Meanwhile, concerns over inflation and recession continued to ripple through the market.