The FBM KLCI declined further into the negative territory as the Bank Negara Malaysia’s decision to maintain the Overnight Policy Rate were within expectation, while the focus was shifted towards the concerns of bigger rate hikes in the US and weakness in the regional markets; 5-day foreign net selling stood at RM427.3m. Global sentiment shall remain on edge while awaiting key payroll reports from the US later today. Given the negative sentiment abroad, we believe the local stock market may trade cautiously amid intensifying global risk.

The FBM KLCI surrendered yesterday’s gains in line with the regional markets’ movements as investors digested the hawkish comments from the US Fed Chair during the congressional testimony. On Wall Street, we believe it might consolidate over the near term ahead of the CPI data that will be released next week, as this might dictate the interest rate direction going forward. The local bourse may remain sideways amid growing selling pressure from the foreign funds, while awaiting the OPR decision by BNM today.

The FBM KLCI bounced higher as banking and commodities related stocks gained momentum. On the global front, worries over interest rate hikes resurfaced following the hawkish remarks from the US Fed Chair Jerome Powell. Closer to home, investors may turn their focus towards more defensive sectors amid intensifying volatility in the market, while eyeing the Bank Negara Malaysia’s interest rate decision tomorrow.

The FBM KLCI edged lower as investors remained cautious awaiting the Fed Chairman Jerome Powell’s comment prior to the congressional testimony; foreign funds continued its outflow for another session, with cumulative 5-day net selling standing at -RM343.2m. Investors’ risk off mode prior to the congressional testimony in the US, coupled with the Bank Negara Malaysia’s interest rate decision may drag the local bourse into a range bound trading environment.

The FBM KLCI settled lower on Friday as profit taking activities re-surfaced, bucking the positive performances across regional markets. Global risk appetite improved, but still awaiting comments from the US Fed officials which will provide clues for the future rate hike directions during congressional testimony. Nevertheless, the market has priced in the solid ISM manufacturing data, which should contribute to at least a positive short term trading environment. Meanwhile, investors may keep an eye on Bank Negara Malaysia’s interest rate decision this week.

The FBM KLCI shook off early losses and rebounded from the 1,450 immediate support level, as bargain hunting activities kicked in. Given the Wall Street accelerated into the green territory overnight as one of the Federal Reserve official’s remarks were more dovish on interest rate direction, we believe the relief rally could spill over to the local bourse. Nevertheless, we believe the upside of the market may be limited until the conclusion of the FOMC meeting this month.

The FBM KLCI kicked off March 2023 with losses given the lack-of-fresh-catalyst environment. Regional markets, however, traded in a positive bias tone after stronger-than-expected manufacturing data from China suggesting that the reopening since January is boding well for the economic recovery; while Wall Street stocks headed south as inflation data from Germany indicate that the global interest rate hikes may continue to stay elevated. Despite the global uncertainties, we believe the local bourse may be due for a rebound.

The FBM KLCI registered a mild loss, extending its declining streak for the fifth straight session amid pervasive external negative sentiment. On the global front, Wall Street wobbled into the negative territory on the final day of February 2023 as consumer confidence came in below expectation. Also, as the outlook from the Fed remains hawkish, the upside on the global stocks market could be limited for now. Meanwhile, we reckon the local bourse may trade in a cautious tone amid the tail end of the earnings season as well as the lack of fresh catalysts environment.