The FBM KLCI extended Friday’s decline amid widespread sell-off. In view of the tightening monetary policy in the US going forward and the Covid-19 restrictions in China, investors may remain cautious over the near term; selling pressure could continue on the regional stock exchanges as well as on the local front. Closer to home, investors will be monitoring on the Bank Negara’s interest rate decision and statements on the economic growth outlook scheduled on Wednesday.

The FBM KLCI plummeted on Friday in tandem with regional peers on the back of bearish global sentiment following a sharp decline on Wall Street and the net outflow of foreign funds. As the US stocks suffered another selloff, we expect the local bourse to follow suit, especially within the technology sector. Nevertheless, there might be bargain hunting activities ahead of the earnings season especially in the recovery-themed sectors as well as REITs.

The FBM KLCI slid below the key 1,600 level in mid-day as weakness in banking and telecommunication heavyweights weighed on the key index. We believe the market could be pricing in softer economy growth globally as China is still having lockdowns on and off in various regions. Given the violent selloff on Wall Street overnight, we believe the technology sector may continue to struggle. Nevertheless, the elevated commodity prices should continue to support the relevant sectors such as energy and plantation.

The FBM KLCI surpassed the 1,600 level prior to the long weekend as investors took cue from the positive performance on Wall Street. As the US Federal Chair eased the concern over a more aggressive rate hikes outlook, we foresee the big surge on Wall Street overnight may spill over to the stocks on the local front. Despite the worries of the Covid-19 lockdown in China would slowdown the economic growth, we believe the elevated commodity prices may provide support for the respective sector at least for the upcoming reporting season.

The FBM KLCI bounced back towards near the key 1,600 level in tandem with the positive regional markets on the back of bargain hunting activities. On Wall Street, investors piled into the technology stocks following solid earnings from major technology stocks, shrugging off concerns over interest rate hikes and weaker 1Q22 US GDP data. We expect the bargain hunting activities in the US could spill over to local technology stocks. Also, we expect digital banking license to be announced in the near term.

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.