Malayan Cement Bhd (MCEMENT) was incorporated since 1950 that engages in the manufacturing and sale of cement, ready-mixed concrete and other related building materials and is now positioned as one of the leading cement players in Malaysia. The group operates 5 plants located at Langkawi, Kanthan, Rawang, Padang Rengas and Bukit Sagu.

The FBM KLCI sustained its gains from the previous session prior to the release of the US consumer price index (CPI) data for January 2023. However, following a mixed performance on Wall Street due to a hotter-than-expected inflation, we believe the global sentiment will remain tepid at least for the near term while looking for fresh catalysts. Closer to home, investors may continue to focus on earnings reporting season as well as the re-tabling of Budget 2023.

Final hour buying support lifted the FBM KLCI into the positive territory amidst bearish regional markets sentiment. With a broad-based rebound on Wall Street overnight, the market could be positioning ahead of the release of the US CPI inflation report, where most of the traders could be anticipating a cooling inflation. Hence, we believe the bullish sentiment is likely to spill over to the regional markets as well as the local bourse especially on the technology sector.

Uzma Bhd (UZMA) is regarded as an integrated oil & gas player providing innovative and cost-effective solutions to the exploration, development and production value chain of the oil and gas industry. Besides Malaysia, UZMA also has established presence in the Asia Pacific region with operational offices in Thailand, Indonesia and the Philippines.

The FBM KLCI recovered from its three-session losses on bargain hunting activities, especially in banking and energy heavyweights. Global sentiment remained mixed as investors are likely to pay attention to the US inflation rate which will be released this week; this may determine the direction of the interest rate going forward. Meanwhile, the local bourse should focus on the earnings reporting season as well as the re-tabling of Budget 2023.

The FBM KLCI declined for the third straight session on the back of weakness in telecommunications and transportations & logistics heavyweights. However, we believe the key index is poised for a mild rebound as investors may hunt for bargains prior to the reporting season, but the upside might be capped amidst the jittery global sentiment. Meanwhile, investors will be watching Malaysia’s 4Q2022 GDP data which will be released today.

The FBM KLCI trended lower amid selling pressure in banking and industrial products & services heavyweights. Meanwhile, the local bourse continued to see net selling activities from foreign investors (5-day cumulative net selling: - RM407.0m). While the bargain hunting activities may emerge following a two-day selldown, overall market undertone will remain cautious amid the overnight negative performance on Wall Street amid the persisted worries over the US interest rate hikes.

Blended ASP declined -8.3% QoQ in 3QFY23. Given the intense market competition, we reckon that ASP may remain under pressure, before mild signs of revival towards mid-to-end 2023 as purchasers’ inventory levels from previous stockpiling activities dialed down and exit of new entrants from recent years.