Market Chat - 2Q22 Strategy - Seizing Opportunities During Crisis Period

Malaysia will be transitioning into the endemic phase and reopening the borders should boost the economic activities going forward. Global themes include (i) tension between Ukraine-Russia, (ii) inflationary pressure, (iii) Fed’s monetary policies, and (iv) recession fears, while domestic catalysts include (i) GE15, (ii) 5G rollout, and (iii) commodity supercycle. Under this environment, we like recovery-themed stocks and GE15 catalysts may boost trading interest within the construction sector. Besides, we opine the commodity-linked sector will remain strong in 2Q22.