The FBM KLCI underperformed the regional peers as the key index traded below 1,600 amid profit taking activities within selected heavyweights. We expect the market to remain volatile over the near term, while investors continue to monitor the potential move of Western countries imposing more sanctions against Russia. Nevertheless, downside risk should be cushioned by continuous foreign inflows.

The FBM KLCI surpassed the 1,600 mark on Friday as investors cheered the progress towards endemic on the first day of border reopening. We opine that the reopening of international border, coupled with the declining daily Covid-19 confirmed cases will continue to bode well for the recovery of business activities.

The FBM KLCI outperformed the regional peers on the back of improving sentiment prior to the reopening of travel borders and the positive sentiment should remain at least for today. However, uncertainties remained on the global front as Russia threatened to halt gas contracts supply and the tension between Ukraine and Russia still persisted.

The FBM KLCI ended flat, while more focus was seen in small cap and lower liners. As prospect of ending the Russia-Ukraine war remained uncertain following the little progress made on the peace talks earlier, we opine that the market will remain in a consolidation phase at least over the near term. However, investors may focus on the reopening of borders in April and the declining Covid-19 cases on the local front; these could provide potential trading opportunities within the recovery-themed stocks.

Without significant fresh catalysts, the local market traded lower with as 12 out of 13 sub-indices joined the FBM KLCI in the negative territories. Nevertheless, we opine that the buying interest may return, taking cues from the overnight Wall Street performance as investors cheered the positive developments from the peace talks between Russia and Ukraine. We expect a broad based recovery in our local exchange.

The FBM KLCI fell below the key 1,600 level amid lacklustre trading as investors stayed cautious amid the lack of fresh catalyst environment. The key index may see mild consolidation over the near term with trading focus on the banking and consumer sectors as crude oil prices tumbled to trade around USD112 on the back of growing concerns over weaker fuel demand in China after several lockdown measures taken to curb Covid-19 infections.

The FBM KLCI finished higher for the second week as investors brushed off some concerns over the Russia-Ukraine conflict while looking forward to the reopening of border on 1st April 2022. We expect the recovery-themed sector to remain resilient prior to this event. Meanwhile, commodity prices are likely to remain volatile on the back of the unresolved conflict between Russia-Ukraine and the Covid-19 related restriction in China where Shanghai will be on a lockdown mode in few stages for 9 days.

Market sentiment continued to stay positive as buying interest in banking, gaming and O&G heavyweights lifted the FBM KLCI marginally higher. We believe the reopening of travel borders in April should revive the economic sectors in Malaysia and benefit the recovery-themed stocks. Nevertheless, sentiment may remain cautious amid the unresolved geopolitical tensions between Russia and Ukraine.