The FBM KLCI fell in tandem with most of the regional markets (except for China) due to concerns over elevated inflation and prolong Russia-Ukraine conflicts. Investors may remain cautious over the near term as current market sentiment could be exacerbated by the ongoing volatility on Wall Street. On a side note, Indonesia’s move to lift a ban on palm oil export could bring a relief to global market and lower the CPO price.

Moving forward, MSC remains committed to improve their daily mining output level through further automation process as well as deploying new machineries to ramp up production efficiency. The move may see MSC hitting a production of 12 tonnes/day (from 11.5 tonnes/day at present).

The FBM KLCI rebounded as investors continued to scoop up beaten-down shares, especially the banking heavyweights. Nevertheless, we expect market sentiment to remain fragile as volatility and selling pressure resumed on Wall Street on the back of inflation fears and weak results from retailers. Also, the hard-hit technology stocks may face further selloff under this interest rate hike environment. Nevertheless, we are slightly positive on the recovery-themed sectors.

QES Group Bhd (QES) involves in the distribution and manufacturing of automated test equipment (ATE) with offices in Malaysia, Singapore, Thailand, Indonesia, Philippines and Vietnam. To-date, QES has installed more than 12,000 units of ATE for more than 3,800 customers across the ASEAN region.

The FBM KLCI extended its gains on the back of returned buying interest in selected commodity related heavyweights led by PMETAL. We are expecting that the broad-based recovery on the local bourse could extend in tandem with the (i) rebound on Wall Street overnight following the release of retail sales data in April and (ii) optimism on China’s announcement on easing lockdowns.

D&O Green Technologies Bhd (D&O) is regarded as one of the leading light-emitting diodes (LEDs) makers in the world offering high-performance and innovative solutions to world-renowned automotive manufacturers. Current operations are supported by 6 regional offices located in Europe, the United States, China, Japan, South Korea and India.

The FBM KLCI ended slightly higher despite the mixed sentiment on Wall Street. Given the persistent inflation worries, we believe the recent rebound could be short lived and we may anticipate selling pressure to emerge in the near term once the Fed’s quantitative tightening take place in June and this may affect the sentiment on the technology stocks. Back on the local front, we expect bargain hunting activities to emerge within the recovery-themed and plantation sectors ahead of the reporting season.

As a fully integrated poultry farming company, TEOSENG enjoys economies of scale which enable the group to meet the rising demand for chicken eggs amid business resumption and gain market share from the local farmers. Nevertheless, we foresee the uncertainty over commodity prices which may prevail over FY22 on the back of inflation as well as the unresolved Russia-Ukraine tensions to post challenge to the group.