The FBM KLCI ended flat after erasing all its intraday losses as buying momentum emerged in the banking sector following Bank Negara Malaysia’s surprise OPR hike of 25 bps. However, the fears over the US banking crisis remained in place, and that may limit the upside potential for the near term as investors may shift their position towards a more defensive approach at least until the banking crisis is resolved. Nevertheless, traders may look at the corporate earnings season for earnings surprises trades.

Scicom (MSC) Bhd (SCICOM) is regarded as one the leading business process outsourcing player and involves in digital solutions, e-commerce solutions and gov-tech solutions. With more than 20 years of experience, SCICOM is now ranked in the global 100 outsourcing company that is supported by diverse client base.

The FBM KLCI staged a rebound after recovering from the morning session’s losses as buying momentum kicked in after investors digested the sales of First Republic Bank. Nevertheless, sentiment is likely to remain cautious amid the persisted worries over the ongoing turmoil in the US banking sector and ahead of the US Fed’s interest rate decision.

We remain cautious in view of the on-going domestic construction segment that continues to be bogged down by the timing award of the mega-infrastructure projects. Also, the sluggish property development market will continue to see new launches being held back.

Capital A Bhd (CAPITALA) has transformed from one of the leading ASEAN airline service providers into a digital travel and lifestyle platform that leverages on data and technology. At end-FY22, CAPITAL recorded 3.7m bigpay users, slightly more than 11,500 Airasia SuperApp users and more than 31,000 teleport users.

The FBM KLCI retreated despite the rally on Wall Street as the sentiment was dragged down by selling pressure in the financial and plantation heavyweight. Investors may remain wary following the decline on Wall Street after First Republic was sold to JPMorgan. Meanwhile, the US Federal Reserve and ECB as well as Bank Negara Malaysia will be having their interest rate decisions this week, thus expecting softer trading activities on the overall markets.

Kelington Group Bhd (KGB)’s wholly owned subsidiary, Kelington Engineering (Singapore) Pte Ltd has secured a Ultra High Purity (UHP) contract to design and build the chemical delivery system as well as to design and install of process utility main line and hookups in Singapore. The aforementioned contract value worth approximately RM102.0m, commencing in April 2023 and are expected to be completed by March 2024 was awarded by an undisclosed global leader in high-tech filtration, separation and purification.

The FBM KLCI rebounded mildly with bargain hunting activities seen within the selected banking and telco sectors, while GENM headed higher after the land sale in Miami. We believe the follow-through buying interest could be seen today following the strong surge on Wall Street after the upbeat earnings from the technology giants such despite the GDP growing at 1.1% (below expectations).