The FBM KLCI advanced on Friday, outperforming the mixed regional stock markets prior to the long weekend break as the official GE15 date was announced. However, investors should remain cautious as persisted worries over possible recession in major economies, which may cap the upside potential over the near term. Meanwhile, traders may focus on the European Central Bank’s interest rate decision which will be released by end of the week.

The FBM KLCI closed at intraday high spurred by persisted buying momentum in PCHEM and selected banking heavyweight after the announcement on the GE15 polling date. Nevertheless, we opine that the local bourse may trade sideways amid prevailing global and local headwinds, such as the political turmoil in the UK following the Prime Minister’s resignation and the still-hawkish Federal Reserve tone on the US interest rate direction. Meanwhile, investors are waiting for the outcome of the GE15.

Banking-led rallies kept the FBM KLCI above the key 1,400 level after the greaterthan-expected special dividend by AFFIN. However, we opine that the rebound may remain fragile as investors may weigh potential global recession concerns over the recent reporting season on Wall Street as the spike in UK inflation spooked the markets. Nevertheless, traders may look at companies with strong balance sheet to invest in the long run.

Cnergenz Bhd (CNERGEN) is principally involved as an electronic manufacturing solutions provider, specialising surface mount technology (SMT) manufacturing solutions for the electronics and semiconductor (E&S) industries. At present, CNERGEN operates on a 22,800 sqf facility in Bukit Tengah, Penang and serves more than 100 customers worldwide.

The FBM KLCI saw a comeback buoyed by buying momentum from foreign funds following a positive cue from Wall Street. Investors may shrug off some recession fear in the near term to position themselves in the ongoing third quarter reporting season on Wall Street. Meanwhile, we expect sentiment on the local bourse to stablise once the GE15 official date is announced later this week.

The FBM KLCI is attempting to find stability over the near term, ahead of the official GE15 date being announced. Meanwhile, China unexpectedly delayed the release of 3Q22 GDP that is scheduled today, may imply that the data might not meet market expectations of +3.4% YoY. Back home, we reckon that the rebound on Wall Street may see buying interest spilling over on beaten down or oversold stocks over the near term. Still, the weakening trading liquidity and the persistent selling from foreign funds (net sell RM870.1m month-to-date) will keep bigger strides of gains at bay.

Sunview Group Bhd is a local solar energy services provider that has completed 98 EPCC of rooftop solar PV facility projects and the provision of construction and installation for 6 LSS PV plants as a subcontractor. Sunview is valued by pegging its FY24f core EPS of 4.8 sen to P/E of 13.0x, leading to a FV of RM0.63.

Samaiden Group Bhd (SAMAIDEN) engages as a total solutions provider for the renewable energy and environment sectors in the Asia region.