The FBM KLCI witnessed a strong rally after the unity government is formed with PH being the largest party in the alliance and PH’s Chairman Datuk Seri Anwar Ibrahim is being appointed as Malaysia’s 10th Prime Minister. Following the conclusive outcome of the GE15, foreign investors turned net buyer, snapping a 6-day outflow streak and a stronger MYR, we believe the local bourse will continue its uptrend move amid rising investors’ confidence. Besides, the FOMC meeting minutes that saw some of the Fed’s official turning less hawkish may be perceived as positive to the stock markets.

The FBM KLCI eked out small gains in a volatile session amid mixed sentiment due to the fluid situation on the political scene. Optimism surrounding the slowdown in rate hikes indicated in the FOMC minutes may spread across the regional markets. Given the UMNO Supreme Council has given the support to a unity government ensuring the stability of the country, we believe the market may turn more positive. Meanwhile, investors could shift their focus from politics to Malaysia’s inflation rate and the on-going reporting season.

Coastal Contracts Bhd’s (COASTAL) history traced back to 1976 and has now evolved into a global integrated marine oil & gas services and solutions provider. Since incorporation, COASTAL its related companies have delivered over 400 vessels to both local and international oil & gas players.

Moving forward, we expect the medical segment which makes up to 56.0% of total revenue in 3QFY22 to remain as the key contributor to the overall group revenue. This will be supported by progressive launches of new products that is in line with the growing demand. Also, two new products (Mermaid declotting device and IHS syringe infusion system) launching in 2HFY22 is expected to strengthen the contribution from the medical segment in FY23.

The FBM KLCI slipped for another session with persisted foreign outflow as investors remained focused on the pending selection of Malaysia’s 10th Prime Minister. Meanwhile, Wall Street advanced overnight on the back of solid company earnings the positive momentum, this positive momentum could spill over to the regional markets. However, we believe the upside on the local front could be capped due to the fluid developments in the political scene, and greater clarity on that is required to boost investors’ confidence.

REXIT remained committed to grow its customer base in e-Cover, InfoGuardian, and e-PPA. The group is in negotiation with various potential customers, targeting to bring two new customers on board in FY24. The revenue generated from the two new customers is expected to be in both transactions and subscription basis. Meanwhile, the group has been continuously refreshing its e-Cover portal and engaging existing customers for the implementation of additional products and services.

Resin continued to see price erosion in 3Q22, largely due to the overhang resin supply in the market as well as the overall lackluster demand amid uncertain global economic condition. We expect price consolidation to continue in the resin market before producers clearing out inventory overhang to rebalance supply and demand.

We gather that the extended normalisation of tin prices appears to found stability early-November 2022 (c.USD16,900/MT) before staging rebound above USD20,000/MT over the past week in anticipation of recovery in demand following the potential easing of Covid-19 restrictions from China. Still, we think that tin price may remain soft due to weak demand from the consumer electronics sector. For now, we have revised our tin prices projection lower to an average of USD20,000/MT for the rest of the year and an average of USD25,000/MT for 2023f.