Umedic Bhd (UMC) is principally involved in marketing, distribution and manufacturing of medical devices as well as the provision of after-sales service. With more than 20 years of operational history, UMC served more than 1,000 customers and offered more than 100 healthcare equipment and accessories.

The FBM KLCI rebounded as bargain-hunting activities picked up in the final trading hour. Investors may continue to eye the rising tension between the US and China. Meanwhile, the market should focus on the US inflation data and FOMC Minutes which will be released this week to gauge the Fed’s aggressiveness in the future rate hikes. On the local bourse, bargain hunters may continue to dominate.

The FBM KLCI has turned sideways and traded lower for the third day amid profit taking activities following weaker jobs data from the US. However, with the overnight rebound on Wall Street, we may anticipate bargain hunting activities to pick up, but the upside might be capped today as investors might be taking a more cautious tone due the shortened trading week in the US and Hong Kong. We believe the traders will be focusing on the non farm payrolls data later today.

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The FBM KLCI turned sideways and profit taking activities emerged with the negative performance on Wall Street overnight. With further selling pressure seen on the technology sector in the US as the market could be pricing in a recession scenario as the 10-year treasury yield dip further, coupled with the private payrolls that came in below expectations, we believe the selling activities may spillover to stocks on the local front; specifically on the technology stocks.

EG Industries Bhd (EG) engaged as a manufacturing of Electronic Manufacturing Services (EMS) of high-end PCB assemblies, plastic injection & molding, plastic secondary processes and wire harness manufacturing for world-renowned brand names of electrical and electronic products. The group has more than 20 years of operational history, backed by more than 3,000 employees.

The FBM KLCI slipped into the negative territory as investors pocketed profit from the recent uptrend. Meanwhile, the global stock markets may remain shaky as investors turned cautious while assessing the impact of the resilient crude oil price. Meanwhile, the latest job openings report in the US that suggested the labour market is slowing becomes another source of uncertainties.

Following the banking crisis in the US and Europe, we believe the sentiment will turn better in 2Q23, underpinned by (i) reopening of China’s borders, (ii) higher crude oil prices, (iii) strong growth in tourists’ arrival and (iv) well supported demand in the technology sector due to rising adoption of AI applications. However, we understand there are several concerns if (i) the Fed remains hawkish and the economy enters a recession and (ii) the BTFP has ended. Under this setup, we favour a few sectors, namely the (i) O&G, (ii) Technology, (iii) Medical, (iv) Utilities, (v) Telco and (vi) Shipping, and (vii) Poultry.