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.

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.