Market Pulse - 13Mar23 - Spooked By Renewed Volatility

The FBM KLCI succumbed to broad-based selling pressure amidst intensified selldown across regional markets due to persisted worries over interest rate hikes and concerns over the Silvergate and SVB events last week. We believe the risk will remain tilted to the downside given the potential contagion effect within the banking sector in the near term as New York Signature Bank is being shut down, but there is a glimpse of hope on the potential bailout situation at this juncture; the US futures are rising. Meanwhile, the US inflation rate will be in focus this week.