The FBM KLCI declined for the fifth session as profit taking activities continues ahead of the debt ceiling negotiations in the US as well as pricing uncertainty in the political scene in the upcoming state elections. However, Wall Street ended higher prior to the US debt ceiling talks as traders hoped that a deal would be reached in the House of Representatives. Nevertheless, we still think the local market may stay sideways, while the upside is likely to be capped on the regional indices as traders may adopt a “wait and see” approach.

Econpile Holdings Bhd's (Econpile) wholly-owned subsidiary, Econpile (M) Sdn Bhd received a letter of award from Bangsar Hill Park Development Sdn Bhd to undertake earthworks, piling, pile cap, basement slab (B1) and reinforced concrete ramp works for Phase 1B1 (Block B) comprising 62-storey apartment block with 410 units and Phase 1B2 (Block C) comprising 49-storey apartment block with 392 units at Lot 365, Lorong Maarof, Seksyen 96, Bandar Kuala Lumpur.

Also, the Imposition Cost Pass Through (ICPT) electricity rate hike from 3.7sen/kWh to 20sen/kWh for medium and high voltage users in Malaysia, coupled with the implementation of new Employment Act that increased the national minimum wage to RM1,500, as well as other rising operating costs in an inflationary environment are likely to impact the group’s operating costs. With the anticipated softer demand going forward, industry players may see difficulties in passing through higher costs amidst heightened competition.

My E.G. Services Bhd (MYEG) is regarded as a concessionaire for Malaysian Electronic-Government (E-Government) MSC flagship application. MyEG builds, operates and owns the electronic channel to deliver services from various Government agencies to Malaysia citizens and businesses.

The FBM KLCI posted a fourth-session decline with selected banking and industrial products & services heavyweights being targeted and led the losses. The overall market sentiment may remain vulnerable amid global economic concern, while investors await the Eurozone’s inflation rate this week. Meanwhile, traders are focusing on the debt ceiling negotiations this week. Although we expect that the bargain hunting activities may kick in on the local bourse amid releasing of more earnings reports, the upside could be limited in the near term.

The FBM KLCI marked the third-session decline as cautious sentiment prevailed prior to the release of Malaysia’s 1Q23 GDP data. On Wall Street, investors are shifting their focus towards the technology sector in the anticipation of the Fed keeping the interest rate unchanged next month. Currently, Nasdaq is relatively stronger than the Dow’s movement. Closer to home, investors may start to position n solid fundamental stocks prior to the earnings season.

The FBM KLCI slid further, tracking the subdued trading tone across the regional bourses as China’s disappointing trade data weighed on the sentiment, while investors were trading cautiously prior to the US inflation data. With the latest CPI data showing signs of easing inflationary pressure, investors are likely to turn more optimistic on the technology sector and the Fed is likely to pause on rate hikes next month.

During the quarter, we gather that average plant utilisation rate rose to 53.6% vs 42.2% recorded in 3QFY23, driven by signs of small green shoots of recovery in demand. Moving forward, HARTA will be embarking onto a 5-year strategic plan that entails operational rationalisation and production efficiency.