The FBM KLCI soared in tandem with the regional peers after China promised to roll out support measures to bolster its stockmarkets following the recent market turmoil. Given the positive overnight performance on Wall Street, we expect our local market to extend its rebound with the banking sector taking the lead after the interest rate hike in the US. As we are getting closer to the reopening of borders, investors may focus on recovery theme and consumer stocks.

CIMB Group Holdings Bhd (CIMB) is regarded as one of the leading ASEAN universal banks and a world leader in Islamic finance. As at end-December 2021, it is ranked as the 5th largest banking group by assets in ASEAN supported by 33,000 staffs and has over 18.0m customers.

The FBM KLCI sank further on the back of unresolved conflict between Ukraine and Russia, coupled with the rising Covid-19 cases in China. However, we believe the strong rebound on Wall Street could spill over to the local front, but the normalising commodity prices may weigh on the commodity related stocks. Meanwhile, the increasing foreign inflows may push the stocks on Bursa.

With the rising Covid-19 cases in China as well as the unresolved geopolitical tension between Ukraine-Russia, we believe overall global sentiment may continue to stay volatile and downside risk may persist in the regional stock markets. Several upcoming catalysts for traders to monitor include (i) Russia-Ukraine ongoing negotiations, (ii) upcoming interest rate decision in the US, and (iii) the spike in Covid-19 cases in China, which may affect the manufacturing sector at least in the near term. Hence, investors may stay defensive at least for this week.

The FBM KLCI retreated amidst the mixed regional market, as the sentiment remained negative, tracking the performance on Wall Street overnight. Moving forward, we expect market to consolidate over the near term given the (i) unresolved Russia-Ukraine tension and (ii) monetary policy decision from the US Federal Reserve this week will be watched closely. Should the Fed turn less hawkish in the upcoming meeting that may push the market higher going forward.

Coastal Contracts Bhd’s (COASTAL) history traced back to 1976 and has now evolved into a global integrated marine oil & gas services and solutions provider. Since incorporation, COASTAL its related companies have delivered over 400 vessels to both local and international oil & gas players.

The FBM KLCI posted further rebound in tandem with its regional peers amid fading geopolitical tension between Russia and Ukraine. However, failure of the Russia-Ukraine talks on cease-fire, coupled with the inflationary pressure could lead to more hawkish tone in the FOMC meeting next week. Hence, the retracement yesterday on Wall Street may put pressure on the local front and profit taking activities may emerge.

The FBM KLCI outperformed the mixed regional bourses despite the overnight negative performances on Wall Street, as bargain hunting activities took place. With the rebound in Wall Street overnight amid the easing tension between Ukraine and Russia, we reckon the gains on the local bourse could be extended, in most of the sectors that were being bashed down over the past month.