Market Pulse - 5May23 - Surprise Moves By Bank Negara Malaysia

The FBM KLCI ended flat after erasing all its intraday losses as buying momentum emerged in the banking sector following Bank Negara Malaysia’s surprise OPR hike of 25 bps. However, the fears over the US banking crisis remained in place, and that may limit the upside potential for the near term as investors may shift their position towards a more defensive approach at least until the banking crisis is resolved. Nevertheless, traders may look at the corporate earnings season for earnings surprises trades.