Market Pulse - 27Dec22 - Continued Foreign Buying May Lift Market

The FBM KLCI extended gains on Friday amid improving sentiment, with foreign funds extending its buying activities (5-day net foreign buying stood at RM51.2m). Also, the improvement on Wall Street overnight may spill over to the local front, but upside might be capped amid worries over the impact of fresh Covid-19 outbreaks in China. Commodities wise, the Brent crude oil price surged above USD83 per barrel mark, fuelled by tight US supplies. We believe the crude oil price could remain positive above the support of USD80 over the near term given the production cut from OPEC+ and Russia.