Market Pulse - Profit Taking Kicked In

The FBM KLCI slipped on Monday alongside with the regional bourses as profit-taking activities emerged following a negative cue from Wall Street. The global markets may see an uneven recovery as investors weighed the escalating US-China tension and some hawkish comments from several Fed officials, which cause a surge in bond yields as investors priced in more interest rate hike. Nevertheless, we believe continuous buying from the foreign funds will support the local bourse.