The FBM KLCI ended flat but observed some bargain hunting activities within selected index members, thus forming a hammer candle, while the Wall Street traded mixed with selling pressure picked up in the technology sector despite Apple’s ‘Wonderlust’ event. We believe the market is focusing on the upcoming CPI and PPI data that will be released later today and tomorrow respectively. Should any pick up in the inflation numbers, that may provide pressure to the stock markets with the anticipation of a more hawkish tone from the Fed.

Overall, the FBM KLCI traded flat as investors were assessing the midterm review of the 12th Malaysia Plan. Meanwhile, Wall Street gained momentum despite heading into several key economic data such as CPI, PPI and retail sales. However, do note that the FOMC meeting will be held next week and traders may stay cautious ahead of the event. Closer to home, we think the local bourse may perform on a positive note after Rafizi Ramli elaborated further on the 12th Malaysia Plan on national TV station, reiterating that the government will be focussing on 5 high-growth high value sectors (HGHV), while the buying interest may spillover from Wall Street as well.

The FBM KLCI ended lower last week prior to the by-election over the weekend, coupled with weaker regional stock markets performance. Since both the Johor by-elections have concluded, we expect the market to perform better in the near term. Also, we expect the positive rebound on Wall Street may spillover to stocks on the local front. However, given the fluid developments in the political scene, it may limit the upside potential of the stock markets and we believe traders may turn their attention to value stocks during uncertainty periods.

Overall sentiment on the Bursa exchange was slightly weaker and the FBM KLCI ended flat for the session as profit taking activities emerged, in line with the regional benchmark. Meanwhile, we expect the negative performance from Wall Street may spillover to stocks on the local front. Given the 2 Johor by-election will be held this weekend, traders may take a cautious stance and continue with the profit taking activities within the construction sector at least for the near term, while shifting their focus on stocks within the defensive or value stocks.

After a sharp sell down, buying support re-emerged and we noticed the FBM KLCI rebounded, thanks to the banking and energy index members. Also, we believe the surge in the oil price has lifted the sentiment in Malaysia. However, with the negative tone on Wall Street following the concerns over a potential hike this year, coupled with the slowdown in manufacturing activities in Germany, profit taking activities may spillover and limits the upside potential on the local front.

Kelington Group Bhd’s (KGB) 2QFY23 core net profit added 40.6% YoY to RM19.1m, boosted by higher contribution from the Ultra High Purity (UHP) and industrial gas segments. Revenue for the quarter climbed 36.0% YoY to RM424.9m. A first interim dividend of 1.5 sen per share, payable on 2nd October 2023 was declared. We are ceasing coverage on KGB due to the relocation of internal resources. Our last recommendation was BUY with a fair value of RM1.85.

Results within expectation. NOVA registered a core PATMI of RM3.5m (QoQ: +19.5%, YoY +156.5%) for 4QFY23, bringing the full year core PATMI to RM14.3m, the result was within our and consensus forecasts at 97%, respectively. Given the forecast is unchanged; we maintain our HOLD recommendation on NOVA, with a target price of RM0.73 pegged to FY24f forecasted earnings.

BYD Electronic International Co Ltd (BYD) is regarded as one of the world's leading providers of intelligent product solutions involving in 4 major products; (i) Smart Phone & NB Notebook PC, (ii) New Intelligent Product, (iii) Auto Intelligent System and (iv) Medical Devices. Over the years, the group has established its footprint with 8 branches and offices across the globe