Market Pulse - 13Apr23 - Further selling pressure could emerge

The FBM KLCI halted 3 straight sessions of winning run as sentiment turned cautious prior to the release of the US CPI data. Despite the slower-than-expected US inflation at +5.0% YoY (vs. consensus expectations of 5.2% YoY rise), we reckon that cautious sentiment may persist given the US FOMC meeting minutes were suggesting rising recession risks in the US economy. We believe further profit taking activities may emerge in the regional markets and our local bourse.