The FBM KLCI ended 1Q23 on a negative note as profit taking activities emerged after the noon trading break last Friday. Nevertheless, we foresee a comeback on the local bourse following the further breakout on Wall Street overnight, coupled with an anticipation of a brighter outlook after Malaysia securing RM170bn worth of investment commitments from China. Sectors that will benefit from the investment are likely to hog the limelight.

The FBM KLCI notched a three-day winning streak, taking cue from the positive environment across regional markets. On the global front, stocks were on track to book further gains amid the quarter-end rebalancing period with easing fears over the global banking crisis. We believe the local bourse will see further upside, supported by the China visit by our 10th Prime Minister, which may anticipate further investments to emerge going forward.

The FBM KLCI extended gains amid improved sentiment on the regional markets as fears over the global banking crisis appeared to ease. We believe the risk appetite on the local front will return, as upbeat earnings reports in the US, coupled with the expectations that the US Fed might be pausing the interest rate hikes may lift the market sentiment on the global markets. Meanwhile, we will also monitor the developments on the China visit by our Prime Minister and traders might speculate big investments to be expected.

The FBM KLCI rebounded above the key 1,400 level after a relief rally on Wall Street amid the First Citizens Bank-SVB deal in the US. Nevertheless, sentiment seems not recovering as smoothly in the US and we expect profit taking activities on the big caps may emerge on the local front. Meanwhile, investors are shifting their focus on the economic outlook under the elevated interest rate environment.

The FBM KLCI drifted lower amid renewed worries on the banking crisis in the US and Europe. However, given that the rally on Dow Jones overnight, contributed by the First Citizens Bancshares-SVB acquisition deal, which has lifted the sentiment on the banking stocks, the Asian stock markets and the local bourse are likely to move higher for the session.

The FBM KLCI slumped, taking cue from the subdued trading activities on the regional markets. However, the resumed buying interest on the Wall Street indices overnight may indicate investors’ confidence and could spillover to our local bourse. Hence, we believe that some bargain hunting activities are likely to emerge despite the worries over the banking sector. Meanwhile, the US consumer confidence and 4Q22 GDP growth rate should take the center stage this week.

The FBM KLCI saw marginal losses amidst mixed regional markets, stemming from selling pressure in most of the banking heavyweights. In anticipation that rate hiking campaign may be nearing an end, coupled with the US Treasury Secretary Janet Yellen’s reassurance on the safety of Americans’ deposits, the local bourse and regional markets may rise in tandem with Wall Street’s movements. Investors however, may continue to monitor the development of the banking sector in the US as uncertainties remain in place.

The FBM KLCI ended on another upbeat note in tandem with the regional markets which have followed the performance on the overnight Wall Street; foreign funds turned net buyers for the second session. However, as Wall Street tumbled overnight, we expect the negative sentiment will spill over to the regional benchmark indices and local bourse, given the rate hike by the Fed and the “blanket insurance” statement on depositors from Janet Yellen.