The FBM KLCI bounced back towards near the key 1,600 level in tandem with the positive regional markets on the back of bargain hunting activities. On Wall Street, investors piled into the technology stocks following solid earnings from major technology stocks, shrugging off concerns over interest rate hikes and weaker 1Q22 US GDP data. We expect the bargain hunting activities in the US could spill over to local technology stocks. Also, we expect digital banking license to be announced in the near term.

The FBM KCLI extended its sideways consolidation phase below the 1,600 level on the back of industrial products heavyweights-led selldown following the overnight selling activities on Wall Street. While global uncertainties may still loom, the recovery-themed sector on the local bourse may gain traction as further relaxation of Covid-19 SOPs effective 1st May 2022 could signal a greater extent of economic recovery.

Malayan Cement Bhd (MCEMENT) was incorporated since 1950 that engages in the manufacturing and sale of cement, ready-mixed concrete and other related building materials and is now positioned as one of the leading cement players in Malaysia.

Moving forward, KGB’s outstanding orderbook of approximately RM1.30bn, which represents an orderbook-to-cover ratio of 2.9x against FY21 revenue of RM517.7m will provide strong earnings visibility over the next 2 years. We remain sanguine on KGB’s outlook that is well supported by the tenderbook of close to RM2.00bn as the group continues to leverage on the semiconductor players expansion plans with tenders skewing towards larger scale wafer fabrication projects.

The FBM KLCI staged a rebound amidst mixed regional market, powered by bargain hunting activities following Monday’s decline. However, we anticipate a further downside risk on the local bourse following the steep slide on Wall Street overnight, especially within the technology sector. Meanwhile, investors may position themselves in companies with solid earnings prospects ahead of the earnings season.

The FBM KLCI skidded below the key 1,600 level as selling pressure dominated the local bourse amid bearish regional sentiment driven by concerns over China’s Covid-19 situation and anticipation on more hawkish interest rate hikes tone in the US by the Feds. While bargain hunting activities may emerge following yesterday’s decline, we expect investors’ sentiment to remain wary and upside on the FBM KLCI could be limited around 1,600 for now. Still, we are optimistic on the recoverythemed sectors on the back of declining Covid-19 daily confirmed cases.

KSL Holdings Bhd (KSL) has established for more than 30 years of experience in the property development sector, primarily in Johor and has since expanded into Klang Valley in recent years. Its flagship development; Canary Garden @ Bandar Bestari carries a gross development value of RM5.00bn sits on 448.0-ac located Klang.

The FBM KLCI registered its third-session gains on Friday as the optimism in banking heavyweights overshadowed the concerns over weakness across regional markets. However, we expect the overnight tumble on Wall Street may weigh on the local sentiment, especially within the technology sector as the Nasdaq fell below the key 13,000 level. Meanwhile, we expect the Indonesia banning the export of palm oil to ease domestic shortages of cooking oil may boost the sentiment for FCPO.