The FBM KLCI posted mild gains amidst the positive regional markets sentiment as investors anticipated a less-aggressive rate hike by the US Fed. Following the pullback on Wall Street, investors may trade on a cautiously positive mode prior to the Hari Raya Aidilfitri festive celebration, while all eyes will be on Eurozone’s and Malaysia’s inflation rate this week.

The FBM KLCI finished largely unchanged after recovering most of its intraday losses; foreign funds turned net buyers for the first time in the past 5 trading days. Tracking the bullish sentiment on Wall Street overnight, we reckon that bargain hunting activities may emerge at least for the session and we expect a broad base recovery to take shape. Commodities wise, the Brent crude oil experienced a mild retracement towards USD86, while the CPO hovered above RM3,700. Gold prices solidify above USD2,000 as investors could be flocking for safe-haven assets following the growing concerns of recessionary risk.

The FBM KLCI halted 3 straight sessions of winning run as sentiment turned cautious prior to the release of the US CPI data. Despite the slower-than-expected US inflation at +5.0% YoY (vs. consensus expectations of 5.2% YoY rise), we reckon that cautious sentiment may persist given the US FOMC meeting minutes were suggesting rising recession risks in the US economy. We believe further profit taking activities may emerge in the regional markets and our local bourse.

Regarded as a mini-conglomerate exposure across 7 business segments plus strategic investment through 18.9% stake in Kenanga Investment Bank Bhd and 20.1% stake in KKB Engineering Bhd.

The FBM KLCI strengthened for the third straight session amid regional markets’ rallies on hopes of a less-hawkish tone by central banks following the Bank of Korea’s move to keep the interest rate unchanged. Whilst the sentiment on the local bourse appeared firmer on the back of prevailing bargain hunting activities, upside may be capped before the release of the US inflation data later tonight.

The FBM KLCI inched up on the back of final-hour bargain hunting activities. On Wall Street, sentiment was mixed as investors traded cautiously ahead of the upcoming CPI data (which will be released on Wednesday), as well as a series of banks’ earnings reports to kick start the earnings season. Meanwhile, we expect the bargain hunting activities may continue with the anticipation for further recovery in the labour market following an improvement in the unemployment rate which fell to 3.5% in February.

Continued expansion effort to fuel growth. Still, the group is committed to expand the e-Cover services to the financial services sector and other segments of ecommerce, targeting to bring new clients on board in FY24. The combination of its large 24x7 secured e-Cover infrastructures and experienced management team will position the group well for its expansion plan.

Mining segment. Production may see gradual improvement on the back of on-going efforts to explore new mining methodologies and additional processing plants at Sg. Lembing. Consequently, we expect MSC to deliver 11.0 tonnes/day of tin ore towards the end of 2023 (2022 production was at approximately 10.4 tonnes/day). Meanwhile, the Asas Baiduri land provides a mining pond and additional storage capacity will lift constraints on deepening of pit mine.