The FBM KLCI rebounded as rallies on Wall Street coupled with China’s future investment in Malaysia boosted sentiment. Although sentiment appeared to improve on the global front, risk may not abate yet as rising crude oil price may again trigger fears over inflation in the US and Europe. Nevertheless, buying interest on the local bourse should be supported by climbing crude oil prices as well as a better economic outlook following the reopening of China borders.

Power Root Bhd (PWROOT) is regarded as one of the leading beverage manufacturers and is a specialist distributor coffee, tea, chocolate malt drinks and herbal energy drinks. Some of their key household brands include Alicafé, Per’l Café, Ah Huat White Coffee, Frenché Roast, Oligo and Extra Power Root.

The FBM KLCI ended 1Q23 on a negative note as profit taking activities emerged after the noon trading break last Friday. Nevertheless, we foresee a comeback on the local bourse following the further breakout on Wall Street overnight, coupled with an anticipation of a brighter outlook after Malaysia securing RM170bn worth of investment commitments from China. Sectors that will benefit from the investment are likely to hog the limelight.

The FBM KLCI notched a three-day winning streak, taking cue from the positive environment across regional markets. On the global front, stocks were on track to book further gains amid the quarter-end rebalancing period with easing fears over the global banking crisis. We believe the local bourse will see further upside, supported by the China visit by our 10th Prime Minister, which may anticipate further investments to emerge going forward.

In 4QFY23, KMLOONG’s FFB production climbed 23.1% YoY to 83,119 tonnes, bringing FY23 total FFB production to 286,987 tonnes (slightly exceeds our projection at 280,000 tonnes), while CPO production added 14.5% YoY to 90,139 tonnes. Meanwhile, CPO extraction rate stood at 21.0%; continues to outperform Malaysia’s average CPO extraction rate of 19.7% over the same period highlighting the group’s production efficiency.

The FBM KLCI extended gains amid improved sentiment on the regional markets as fears over the global banking crisis appeared to ease. We believe the risk appetite on the local front will return, as upbeat earnings reports in the US, coupled with the expectations that the US Fed might be pausing the interest rate hikes may lift the market sentiment on the global markets. Meanwhile, we will also monitor the developments on the China visit by our Prime Minister and traders might speculate big investments to be expected.

The FBM KLCI rebounded above the key 1,400 level after a relief rally on Wall Street amid the First Citizens Bank-SVB deal in the US. Nevertheless, sentiment seems not recovering as smoothly in the US and we expect profit taking activities on the big caps may emerge on the local front. Meanwhile, investors are shifting their focus on the economic outlook under the elevated interest rate environment.

YBS International Bhd (YBS) specialises in high-precision tools, metal, plastic components and sub-component assembly. The products are catered to high-end exacting applications in markets such as semiconductors, electrical and electronics, computer, telecommunications, automotive, medical and connector. To-date, YBS operates 7 manufacturing operations of which 3 are located in Johor, 2 in Penang, 1 in Ho Chi Minh City, Vietnam and 1 in the State of Kerala, India.