Market Pulse - 16Dec22 - Selling Pressure Returns

The FBM KLCI tumbled more than 1% as the telco and banking heavyweights succumbed to selling activities yesterday, while the foreign funds have turned net seller for the session. Meanwhile, the ECB maintained its interest rate hike decision to 2% and warns of more increases to fight inflation going forward. With the rising recession fear amid the global interest rate hike environment, we believe the regional and local bourses are likely to trend in the negative tone at least over the near term.