Market Pulse - 19Dec22 - Window Dressing May Lift Stock Markets

The FBM KLCI ended the trading week of on a positive note as buying momentum in the plantation stocks led the key index higher amid the FTSE rebalancing activities. Meanwhile, the selling pressure on the US stock markets could have overdone after falling from 34,700 to 32,600 zone and may be due for a technical rebound, despite mounting fears over recession risks. On the local front, the reconvening of the Parliament session, coupled with the vote of confidence will be a formality process to build investors’ confidence, hence the downside risk could be limited with the ongoing window dressing activities.