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.

Sunway Construction Group Bhd (SUNCON) is regarded as Malaysia’s largest pure play construction company listed on Bursa Malaysia. The group is capable of delivering integrated construction services works, having delivered various private and public infrastructures and building works over the past 40 years.

The FBM KLCI slipped deeper into the negative territory throughout the session amid renewed selling pressure. However, following yesterday’s broad-based selldown we believe the bargain hunting activities are likely to emerge, in view of the upbeat cue from Wall Street overnight after the Fed Chair Jerome Powell indicated that the inflation could be subsiding.

Samaiden Group Bhd (SAMAIDEN) engages as a total solutions provider for the renewable energy and environment sectors in the Asia region. To-date, SAMAIDEN has completed more than 200 projects with total installed capacity of 300MWp including large scale solar (LSS) farms and both residential and commercial projects.

The FBM KLCI eked out small gains on the back of final hour buying interest. However, the global sentiment remained uncertain in view of the Nasdaq-led decline on Wall Street following the robust January employment figures which has raised concerns over potential more hawkish tone from the US Fed. Meanwhile, on the local front, investors could be focusing on the upcoming earning season and the re-tabling of Budget 2023 on the 24th of February.

The FBM KLCI rebounded as the market sentiment was buoyed by the upbeat performances on Wall Street overnight following the less hawkish tone on the interest rate direction from the Fed as the CPI numbers in the recent months have been declining. Given Wall Street is in a relief rally environment, we believe the global sentiment may turn positive and buying interest may spillover to the stocks on the local front. In the meantime, we believe investors will be positioning themselves for the upcoming reporting season as well as the re-tabling of Budget 2023 on 24th of Feb.