Global uncertainties arising from fears over additional interest rate hikes from the US Fed have sent the FBM KLCI below the 1,500 zone. Global sentiment should remain negative as investors braced for the US Fed Chairman’s speech in the Jackson Hole meeting which could signal further aggressive stance in taming the inflation. Nevertheless, we expect buying interest to emerge on stocks with solid results amid the ongoing reporting season on the local bourse.

The FBM KLCI drifted lower last Friday in tandem with most of the regional markets as persistent selling pressure were noticed following the elevated inflation data in the European region. With the global investors reassessing the risks of interest rate hikes by the US Feds moving forward, growth stocks may see some selling pressure. Nevertheless, we believe traders on the local bourse may remain cautiously optimistic amid the earnings season, while monitoring Malaysia’s inflation rate that will be released this Friday.

The FBM KLCI extended losses amid weaker sentiment across the regional markets as investors continued to digest recent gains. Given the US markets are still finding its direction, we believe the local bourse may take a breather amid softer inflow of foreign funds and the FBM KLCI might be resisted along its SMA200 zone. Investors will be focusing on the ongoing reporting season to position themselves in the stock markets.

The FBM KLCI saw a mild setback despite a bullish momentum across the regional markets; KLCI’s earlier gains faded in the afternoon session. In view of the softer Wall Street performance, sentiment on the local bourse may turn cautious as attention shifted back to the US Fed’s interest rate policy following the release of the Fed’s July meeting minutes. Nevertheless, investors may look out on the upcoming earnings season, stocks with solid earnings growth under this environment will be on the focus.

The FBM KLCI staged a strong breakout, mainly fuelled by buying interest in the telecommunication heavyweights, coupled with the healthy inflow of foreign funds; 5-day net foreign buying stood at RM719.8m. While the global markets may keep an eye on UK’s inflation to gauge the global recession risk, we believe the local bourse should remained positive in the upcoming earnings season as the international border was uplifted in April.

The FBM KLCI retreated amid worries over China’s economic slowdown, which led to an unexpected lending rate cut. While the market may trade in a positive-biased mode and looking forward to a brighter outlook in the ongoing earnings season, China’s economic slowdown may indicate risk and a spike in recession fears.

The FBM KLCI eked out marginal gains amidst the positive-biased regional market. Also, Wall Street ended positively with the easing inflation expectations, coupled with the stronger-than expected consumer sentiment should see buying interest spilling over to our stock markets. Given the key index is staying above the 1,500 level, the local bourse may see more upward movement driven by optimism ahead of the upcoming reporting season, in view of the better-than expected Malaysia GDP data.

The FBM KLCI climbed above the psychological 1,500 level amid positive regional market sentiment as investors cheered that the inflation is cooling off in the US for June. Whilst the market has stabilised along 1,500, we believe the profit taking activities may pick up with the mixed trading tone on Wall Street overnight, following a drop in PPI data. Hence, broader market may take a breather for the short term; especially the technology sector.