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.

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.

Registration Guide

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.