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.

Moving forward, we reckon that the UHP segment will continue to anchor revenue contribution, being kept busy by multiple wafer fabrication works. Meanwhile, the general contracting segment will focus onto the relatively large-scale construction work that was secured last year at Sarawak, while the industrial gas segment will be kept busy with the gas supply scheme for one of the largest optoelectronics semiconductor companies located at Kulim, Kedah.

The FBM KLCI fell into the negative territory in line with the regional peers as investors remained jittery following the overnight tumble on Wall Street. Given the persistent inflation worries, we believe the selling pressure may prolong on Wall Street, translating to spillover selling activities on the technology sector. On the broader market, we expect bargain hunting activities to emerge in the recovery-themed and plantation sectors ahead of the reporting season.

The FBM KLCI rebounded with the bargain hunting activities in the plantation and banking sector; the latter propelled following the BNM’s announcement to increase the overnight policy rate by 25 basis points. We believe investors should brace for heightened volatility across global markets as Wall Street tumbled overnight in anticipation on a faster pace of interest rate hike and potential further tightening in monetary policies after the higher-than-expected inflation data was released. Nevertheless, recovery-themed and commodities related sectors may be favourable ahead of the quarterly reporting season.