The FBM KLCI closed lower for the second day prior to the release of US CPI data. With the US posting softer-than-expected CPI print at 7.1% YoY (the Fed’s inflation target is at 2% YoY), the Wall Street has advanced overnight as investors expect either a gradual interest rate hike progress or lower quantum of increase going forward. At this moment, the market believes that the worst of inflation is behind us and the global stock markets may see some recovery.

The FBM KLCI dipped alongside with the regional markets as traders were cautious ahead of the monetary policy meetings across the globe this week. Given that the Wall Street gained momentum overnight in the anticipation of a declining US CPI data, we expect buying interest may set in for the local exchange. Nevertheless, the FOMC meeting outcome on the 14th of Dec will be crucial for the overall stock markets’ direction. At this stage, the market is expecting a softer CPI and the Fed may turn dovish.

Cengild Medical Bhd (CENGILD) is regarded as a specialised healthcare service provider in the diagnosing and treating gastrointestinal and liver diseases and obesity. Their partnership with more than 20 insurance providers in Malaysia provides a wide range of access for patients to facilitate cashless payments in the form of guarantee letters from the insurance companies and third-party administrators.

Despite the slower contribution from Ambu, growth from the medical segment will be anchored by new products coming onto stream in 2023. This include IHS nonelectric syringe infusion system that will see mass production coming onto stream in December 2022, Ambu’s Falcon–C (colonoscope) in 2QFY23 and Plass’ soldier first aid hemostatic product that is still awaiting for FDA approval.

Looking ahead into 2023. OSK aims to rollout approximately RM1.00bn worth of gross development value (GDV) new launches. This comprises a healthy mixture from their (i) existing 2 townships located at Sg. Petani, Kedah and Seremban, Negeri Sembilan as well as (ii) several high-rise residential projects across Klang Valley. After acquiring some 89-ac of land (50-ac at Sg. Petani and 39-ac at Seremban) for a total of RM41.0m year-to-date, OSK will also remain active in their land banking replenishment activities, with the focus on lands adjacent to their 2 townships.

The FBM KLCI rebounded after a 5-day selldown and amid broad-based buying interest emerged in tandem with the positive sentiment across regional markets. However, given the pullback last week on Wall Street, the local bourse may trade in a range bound mode this week ahead of a series of interest rate decisions from the US Fed, UK Bank of England, and European Central Bank. Nevertheless, investors will be looking forward to China’s further reopening and easing of Covid-19 restriction.

Ramssol Group Bhd (RAMSSOL) is regarded as a human capital management (HCM) solution and technology specialist provider with regional presence across 5 countries. Some their key customers include notable entities such as Capitaland Ltd, RHB Bank Bhd, National University of Singapore, Paramount Corporation Bhd, ThaiFoods Group PLC and Export Import Bank of Thailand.

The FBM KLCI was dragged down marginally by the selldown in Petronas-linked heavyweights; 5-day net foreign selling stood at year-to-date high of RM938.8m. The global stock markets are deploying a wait-and-see approach as investors are waiting for more details from the upcoming FOMC meeting, focusing on the US Fed’s interest rate decision next week. Nevertheless, we believe some bargainhunting activities to emerge on the domestic front following the Covid-19 easing measures in China.