Market Pulse - Profit Taking Emerged

Despite a broad rebound in regional markets, the FBM KLCI retreated to close below the 1,600 psychological level as investors focus on the geopolitical developments between Russia-Ukraine after the earnings season. With the Wall Street remained in the risk-off mode overnight, we expect volatility to persist and profit taking activities may continue on the local front with the unsettled Russia-Ukraine incident. Nevertheless, the elevated commodity prices, coupled with the net buying of foreign funds should lend support to the local bourse.