Market Pulse - Selling Pressure Regained Control

The FBM KLCI tumbled more than 1.8% along with regional peers as pervasive fears over recession rippled through the markets. We believe the sentiment will remain negative-bias as investors mulled the US Fed Chairman’s testimony on the commitment in interest rate hikes to tame inflation, while eyeing Malaysia’s and Japan’s inflation rate tomorrow. Nevertheless, the oversold stocks may still look attractive for bargain hunting activities. Commodities prices have shown a downtrend move amid growing recession worries.