Despite the weakness as of late, we expect the key index to re-test the 1,500 level, taking cue from the positive sentiment on Wall Street overnight. The lower liners are staying firm amid strong buying interest, but we caution that the overbought position in most of the stocks across Bursa Malaysia may attract quick profit taking over the foreseeable future. Globally, the stronger-than-expected economic data in the US may continue to lend support for further recovery on Wall Street

The FBM KLCI failed to build onto the positive momentum from the pre-CNY moves as the key index lost ground on quick profit taking activities. Still, we are banking on the recovery theme from China which will boost the FBM KLCI above the 1,500 level, while the lower liners may continue to capitalise on the improved trading environment and enjoy further rotational play. Globally, the focus will shift to the preliminary reading of the US 4Q22 GDP data tonight.

Established since 1989 that specialised in provision of technical and engineering support services in the oil and gas industry in Malaysia.

The FBM KLCI took another step higher to close marginally above the 1,500 level. This week, we reckon that the trading activities will be muted amid the holiday-shortened trading week as most investors could still be enjoying the break. Nevertheless, bouts of upsides are to be expected with traders taking further positions in riskier assets following the Bank Negara’s unexpected move to maintain the OPR.

Moving forward, we are cautiously optimistic on the office space outlook over the near term as we expect the market sentiment to remain soft amid rising inflationary pressures on the global economy. Besides, we expect an increase in property operating expenses due to electricity tariff hike effective 1st January 2023 to 30th June 2023.

Chaya Mata Sarawak Bhd (CMSB) is regarded as a mini-conglomerate with business exposure across (i) cement & clinker manufacturing, (ii) construction materials & trading, (iii) construction, (iv) road maintenance, (v) property development, (vi) Samalaju development and (vii) ICT. The group also involves with strategic investment through 18.9% stake in Kenanga Investment Bank Bhd and 20.1% stake in KKB Engineering Bhd.

The FBM KLCI eked out marginal gains following the decision by Bank Negara Malaysia to maintain the overnight policy rate (OPR) at 2.75%. Nevertheless, we expect the sideways trend on the local bourse may turn into a negative biased environment prior to the Lunar New Year holiday after Wall Street extended its slide amid increasing concerns on softer economic activities going forward and the expectation of the Fed’s tone to remain hawkish.

The FBM KLCI slid as the cautious trading sentiment emerged ahead of the BNM MPC meeting, bucking the positive regional markets performances; the bullish sentiment on the regional markets was supported by the unchanged Bank of Japan’s monetary policy and optimism over China’s reopening. We believe the traders may take a cautious approach following the weaker trading tone on Wall Street overnight and ahead of the BNM OPR decision.