The FBM KLCI rebounded as investors saw the recent selldown as a buy-the-dip opportunity, positioning for the GE15 event, but the trading activities was relatively quiet as investors remained cautious prior to the US Fed’s FOMC meeting and BNM’s meeting. Nevertheless, we expect the selling pressure may emerge in the Asian stock markets after the US Fed Chairman Jerome Powell reiterated the hawkish stance to combat stubbornly-elevated inflation, which may dampen the attractiveness on interest rate sensitive sector such as technology.

Prospects remains buoyant as KGB is equipped with an outstanding orderbook of approximately RM2.22bn. This which represents an orderbook-to-cover ratio of 4.3x against FY21 revenue of RM517.7m that will provide strong earnings visibility over the next 2 years. Meanwhile, tenderbook stays healthy at approximately RM1.50bn that is skewed towards the semiconductor space.

Opcom Holdings Bhd (OPCOM) engages in the (i) manufacturing of fibre optic cables, provision of engineering services to telco and power utilities industries as well as (ii) manufacturing and trading of cable filling and flooding compounds for export markets.

The FBM KLCI fell, bucking the positive performance across the regional bourses as investors’ risk appetite waned ahead of the US Fed’s interest rate decision. The local bourse may set for further profit taking as investors may brace for potential interest rate hike by the BNM. Meanwhile, Finance Minister commented that there will be possible adjustments for the Budget 2023 when it is re-tabled.

Moving forward, ECONBHD's outstanding orderbook stood at approximately RM450.0m; represents an unbilled orderbook-to-cover ratio at 1.2x against FY22 revenue of RM373.4m will provide earnings visibility over the next 18 months. Meanwhile, tenderbook remains relatively stable at approximately RM400.0m.

The FBM KLCI ended positively in tandem with the regional markets, thanks to the telecommunication sector as well as the plantation heavyweights. However, the profit taking activities on Wall Street after a significant rally may cap the upside potential on the local front. We expect the investors may take a cautious stance ahead of the important FOMC meeting that will conclude on the 2-Nov (US time). Meanwhile, traders may focus on GE15 theme and position within GLC-linked companies.

Harbour-Link Group Bhd (HARBOUR) history traces back since 1975 in the shipping industry and now has grown into an integrated logistics services provider, shipping and engages in construction works, heavy lifting and haulage as well as property development. HARBOUR owns a total of 12 container vessels with a total capacity of 6,100 twenty-foot equivalent units (TEUs).

The FBM KLCI slipped on Friday as profit-taking activities within selected banking and energy heavyweights on the key index pulled the index lower. While Wall Street staged a massive comeback on Friday, investors may continue to monitor a series of event this week including the interest rate decision by the US Feds and Bank of England to gauge economic outlook and market directions going forward.