The FBM KLCI drifted lower amid renewed worries on the banking crisis in the US and Europe. However, given that the rally on Dow Jones overnight, contributed by the First Citizens Bancshares-SVB acquisition deal, which has lifted the sentiment on the banking stocks, the Asian stock markets and the local bourse are likely to move higher for the session.

Focus to remain in house brand segment. We anticipate the contribution from house brand segment will gradually increase in line with NOVA’s ongoing strategy focusing on the segment, spurred by (i) increase in number of distributors, (ii) higher contribution from current distributors, and (iii) expansion of product range. Meanwhile, for the OEM segment, we anticipate a flat growth.

The FBM KLCI slumped, taking cue from the subdued trading activities on the regional markets. However, the resumed buying interest on the Wall Street indices overnight may indicate investors’ confidence and could spillover to our local bourse. Hence, we believe that some bargain hunting activities are likely to emerge despite the worries over the banking sector. Meanwhile, the US consumer confidence and 4Q22 GDP growth rate should take the center stage this week.

The FBM KLCI saw marginal losses amidst mixed regional markets, stemming from selling pressure in most of the banking heavyweights. In anticipation that rate hiking campaign may be nearing an end, coupled with the US Treasury Secretary Janet Yellen’s reassurance on the safety of Americans’ deposits, the local bourse and regional markets may rise in tandem with Wall Street’s movements. Investors however, may continue to monitor the development of the banking sector in the US as uncertainties remain in place.

The FBM KLCI ended on another upbeat note in tandem with the regional markets which have followed the performance on the overnight Wall Street; foreign funds turned net buyers for the second session. However, as Wall Street tumbled overnight, we expect the negative sentiment will spill over to the regional benchmark indices and local bourse, given the rate hike by the Fed and the “blanket insurance” statement on depositors from Janet Yellen.

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The FBM KLCI advanced as investors were on a bargain hunting mode in view of the calmer sentiment on the regional markets. Meanwhile, Wall Street climbed overnight on fading fears following Treasury Secretary Janet Yellen’s reassurance to avert further banking crises. The US Fed’s interest rate decision tonight will take the center stage and investors should remain cautious ahead of the conclusion of the meeting as aggressive rate hike or hawkish tone from the Fed is likely to hammer investors’ sentiment further.

The FBM KLCI witnessed an intense selloff along with the regional peers as investors remained cautious over the banking turmoil in the US and Switzerland. However, we saw the sentiment improved on Wall Street following the rescue deal for Credit Suisse, while investors may shift their focus to the US Fed’s interest rate decision tomorrow (US time). We believe the local bourse will remain sideways until more clues are given after the conclusion of the FOMC meeting.