The FBM KLCI rallied in a constructive Thursday session in tandem with the regional peers, taking cue from the strong gains on Wall Street. We believe the narrative that the US Fed will slow down the pace of interest rate hikes will continue to send positive signal to the regional and local bourses despite the contraction of GDP in the US. Meanwhile, Indonesia’s decision to lift its restrictions on the entry of its workforce into Malaysia starting 1st August 2022 should benefit the manufacturing and plantation sectors in Malaysia.

Meanwhile, we note that OMH has successfully modified and converted 2 FeSi furnaces to produce manganese alloys with hot commissioning and performance testing on 27th June 2022 and 25th July 2022 respectively. This will boost total annual production capacity to 333,000-400,000 MT per annum of manganese alloys. In the meantime, 2 units of FeSi furnaces are still undergoing conversion works (demolition works completed and civil modification works are ongoing) that will be able to generate 21,000-24,500 MT per annum of metallic silicon (MetSi) upon completion.

The FBM KLCI reversed earlier losses to end in the positive territory prior to the US Fed’s interest rate decision as concerns over rate hikes have been priced in. We believe the recent rebound should continue as the comments by the US Fed Chairman Jerome Powell have eased investors’ concerns over the interest rate hike outlook going forward. The positive momentum on Wall Street is likely to spill over to the regional and local bourses.

CTOS Digital Bhd (CTOS) engaged in the business of credit reporting, digital software related services, software development, outsourcing and training services. Their solutions and services are widely used by Malaysia’s banking and financial institutions, insurance and telecommunication companies, large corporations, SMEs as well as consumers for self-checking.

The FBM KLCI slipped after four straight session gains as investors braced for a possible US interest rate hike. Also, as the 2Q22 US GDP data will be released on the 28th of July, investors should prepare for more volatility over the near term, as recession fears may return as the US economy contracted in 1Q. Hence, stocks with defensive characteristics may be in focus.

The FBM KLCI outperformed the regional peers as the key index gained momentum in the final trading hour, supported by influx of foreign funds. Although the market sentiment has been improving over the past few sessions, we reckon that the investors may remain cautious ahead of the US Fed’s interest rate decision and could take a breather in view of the mixed performances on Wall Street overnight.

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. Throughout the year, HARBOUR has established a solid footprint extends across the Intra-Asia region.

The FBM KLCI ended on a positive note last Friday amid the return of foreign funds which noted gains accelerated on the banking heavyweights. However, we believe the key index may succumb to mild profit taking activities following the overnight pullback on Wall Street. Nevertheless, the broader market may stay positive-bias over the near term as it has dropped significantly lower over the past 2 weeks into the oversold region. This week, investors will be watching closely on the US Fed’s interest rate decision.