On the first day of June, the FBM KLCI surrendered big gains from the previous session as global inflationary pressure remains a concern which may derail the economic recovery. Investors may trade cautiously following the overnight decline on Wall Street. Nevertheless, traders are likely to lookout on selected technology stocks with solid balance sheet and growing quarterly results (at least positive QoQ growth).

The FBM KLCI was traded higher due to the MSCI semi-annual review and we noticed trading value surged above RM6.12bn for the session with positive foreign inflows. Nevertheless, we believe the global sentiment may remain tepid as (i) Ukraine-Russia tension persists and (ii) elevated crude oil price may continue to put soaring inflation in focus; these factors may limit the upside potential on the recent relief rebound.

The FBM KLCI ended slightly lower on profit taking activities within selected consumer and plantation heavyweights. We expect investors to reassess the corporate earnings and reposition on solid companies as we are heading into the final day of reporting season. Meanwhile, we expect the easing of restrictions in China will help the market sentiment overall. Hence, buying support should emerge within the technology and recovery themed sectors. Nevertheless, upside on the broader market may be kept as traders be focusing on the inflationary pressure that may dampen the corporates’ margins.

The FBM KLCI rose in tandem with the regional peers on the back of continuous bargain hunting activities. As Wall Street saw a recovery overnight, we expect to see improving trading activities on the local front, especially the technology sector with Nasdaq trading above 12,000. Nevertheless, we expect traders to remain cautious going into final 2 days of the reporting season. On a sidenote, the FBM KLCI semi-annual review will be announced on 2nd June 2022.

The FBM KLCI closed higher amid buying interest within telco and banking heavyweights. Given the strong rebound and follow through interest on Wall Street, we expect the spillover of buying support may emerge on the technology stocks on the local front and traders may focus on the recent bashed down technology leaders as some of their earnings have stabilised in the recent reporting season. However, we expect the upside to be limited given the unresolved Ukraine and Russia tension.

The FBM KLCI rebounded from a 4-day losing streak amidst mixed regional performances as investors scooped up beaten-down shares. Despite the rebound on Wall Street, we believe the market sentiment will remain cautious on the back of concerns over global supply chain crisis which may slowdown the pace of economic recovery. Meanwhile, under the current inflationary environment, investors may favour sectors that are benefitted from the commodity boom.

The FBM KLCI suffered its fourth straight session of decline, marking the longest losing streak since end of January 2022 as banking and healthcare heavyweights led losses. Given the selldown in technology stocks on Wall Street, we believe it may spillover to the tech sector on the local front. However, we still expect selected stocks in the consumer and REITs sectors to outperform the market on the back of business recovery catalyst.

Steep selloff in plantation heavyweights sent the FBM KLCI into the negative territory amidst mixed regional performances. Investors are likely to trade cautiously at the start of the session, prior to the release of Malaysia’s inflation rate tomorrow. Nevertheless, we believe bargain hunting activities could kick in as the concerns over inflation may have priced in and traders may focus in the recovery-themed sectors. Also, we believe buying interest may emerge in the technology stocks in line with the rebound in Wall Street.