The FBM KCLI extended its sideways consolidation phase below the 1,600 level on the back of industrial products heavyweights-led selldown following the overnight selling activities on Wall Street. While global uncertainties may still loom, the recovery-themed sector on the local bourse may gain traction as further relaxation of Covid-19 SOPs effective 1st May 2022 could signal a greater extent of economic recovery.

The FBM KLCI staged a rebound amidst mixed regional market, powered by bargain hunting activities following Monday’s decline. However, we anticipate a further downside risk on the local bourse following the steep slide on Wall Street overnight, especially within the technology sector. Meanwhile, investors may position themselves in companies with solid earnings prospects ahead of the earnings season.

The FBM KLCI skidded below the key 1,600 level as selling pressure dominated the local bourse amid bearish regional sentiment driven by concerns over China’s Covid-19 situation and anticipation on more hawkish interest rate hikes tone in the US by the Feds. While bargain hunting activities may emerge following yesterday’s decline, we expect investors’ sentiment to remain wary and upside on the FBM KLCI could be limited around 1,600 for now. Still, we are optimistic on the recoverythemed sectors on the back of declining Covid-19 daily confirmed cases.

The FBM KLCI registered its third-session gains on Friday as the optimism in banking heavyweights overshadowed the concerns over weakness across regional markets. However, we expect the overnight tumble on Wall Street may weigh on the local sentiment, especially within the technology sector as the Nasdaq fell below the key 13,000 level. Meanwhile, we expect the Indonesia banning the export of palm oil to ease domestic shortages of cooking oil may boost the sentiment for FCPO.

The FBM KLCI extended its rebound, mainly buoyed by gains in banking heavyweights as investors shrugged off the negative tone across the regional markets and focused on the economic recovery following the reopening of travel borders. While foreign funds continue to support the local bourse, the overnight selldown on Wall Street may impact negatively in the technology sector. Investor may also monitor Malaysia’s inflation data which will be releasing later today.

Renewed buying interest in most of the index heavyweights led by the banking stocks pushed the FBM KLCI higher following the positive overnight performance on Wall Street. However, we believe selected rebound on our local front, specifically the technology stocks are likely to give back the recent gains on the back of the weaker Nasdaq performance. Nevertheless, traders could monitor few other catalysts like (i) reopening travel borders theme, (ii) elevated commodity prices and (iii) recovering construction activities for trading purposes.

The FBM KLCI marked a third session of decline amid mixed regional sentiment as traders took profit prior to the public holiday; financial stocks lagged within the broader market. However, we expect the bargain hunting activities to emerge on the local bourse amid declining Covid-19 confirmed cases, coupled with the rebound on Wall Street overnight. Meanwhile, the acceptance of the highway deal by GAMUDA may trigger some buying interest within the construction and building material segments.

The FBM KLCI ended the week on a negative note in a subdued market environment, in line with the regional downtrend move. While external risks remained in place, the border reopening should continue to bode well for the local economy especially the aviation and consumer sectors. Meanwhile, investors should monitor China’s key economic data which will be released today and Malaysia’s inflation rate later this week to gauge the BNM’s interest rate directions moving forward.