The FBM KLCI dipped following three straight winning sessions, taking cue from the negative regional markets. The local bourse may see further volatility amid the quarter-end rebalancing activities. Meanwhile, new ceiling price for chicken to be set at RM9.40 per kg may be mildly positive for the poultry players, albeit the capping price is RM0.50 higher than the previous level.

The FBM KLCI bounced in the afternoon session along with most regional peers as investors cheered China’s reduction in quarantine period for international travellers. Nevertheless, the overnight pullback on Wall Street signified an overall negative sentiment ahead of the earnings season on persistent worries over recession. The broad sell-off may spill over to the regional markets as well as the local bourse.

The FBM KLCI booked marginal gains amid improving regional sentiment. We are cautiously optimistic on the market outlook as foreign selling continued to decline; 5-day net selling stood at RM76.9m vs -RM365.6m from a week earlier. However, market direction remains unclear as Wall Street retreated mildly overnight.

The FBM KLCI closed a turbulent session mildly higher on Friday along with the regional peers as investors have priced in concerns over a potential recession moving forward. However, given the sharp gains on Wall Street overnight, investors’ narrative may have changed for now and may look out for opportunities within the stock market as most of the stocks were bashed down and oversold over the past weeks. On a side note, we believe the optimism in poultry sector may fade following the Prime Minister’s decision to retain the ceiling price of chicken.

The FBM KLCI finished little changed amid positive bias regional performances. While the overnight gains on Wall Street may spill over to the local bourse, we reckon any gains should be short-lived on the back of mounting concerns over potential recession as well as the inflationary pressure that may hit corporate earnings going forward.

The FBM KLCI tumbled more than 1.8% along with regional peers as pervasive fears over recession rippled through the markets. We believe the sentiment will remain negative-bias as investors mulled the US Fed Chairman’s testimony on the commitment in interest rate hikes to tame inflation, while eyeing Malaysia’s and Japan’s inflation rate tomorrow. Nevertheless, the oversold stocks may still look attractive for bargain hunting activities. Commodities prices have shown a downtrend move amid growing recession worries.

Overall, the sentiment has improved across the regional markets, which has helped the FBM KLCI to rebound from its 52-week low. Moreover, following the strong rebound on Wall Street overnight of over 2.0%, the local bourse may see further recovery supported by bargain hunting activities. We believe most of the sectors that have been bashed down earlier should gain traction at least for the near term. Nevertheless, investors are still weighing on the risk of recession arising from global inflation, hence traders may adopt a sell into strength strategy.

The FBM KLCI extended losses amid mixed performance on regional bourses amid global recession worries. However, we believe stocks on the local bourse are oversold and could be due for bargain hunting opportunities, but overall market sentiment should remain challenging in the near term on the back of prospect of few more rounds of rate hikes; thus, the rebound might be short-lived.