The FBM KLCI climbed for the third consecutive session, taking positive cue from the global markets as industrial products & services and plantation heavyweights led gains. Given Wall Street ended flat without significant selling pressure which may benefit stocks on the local front.

Mr D.I.Y. Group (M) Bhd (MRDIY) started off since July 2005 and has evolved into the largest home improvement retailer in the region with more than 850 stores across Malaysia and Brunei. MRDIY offers an average of 18,000 variety of products in both the physical and online store.

Together with the aforementioned contract, ECONBHD’s orderbook replenishment year-to-date stands at RM83.5m. This makes up to 33.4% of our expectations of RM250.0m for FY23f. We reckon that future jobs will accelerate moving into subsequent months as property launches over the past 2 years that were held off will take place in this and next year.

The FBM KLCI witnessed further gains as selected telecommunication, consumer, and banking heavyweights lifted the key index; the foreign funds turned net buyer after a 14-session selloff. We believe the local bourse may set for further recovery on the back of stronger oil price, coupled with bargain hunting activities ahead of the tabling of Budget 2023.

Taliworks Corporation Bhd (TALIWRK) is an established infrastructure-related company that involves in 5 key areas, namely (i) water treatment, supply and distribution, (ii) highway toll concession and maintenance, (iii) waste management, (iv) engineering and construction and (v) renewable energy.

Following a heavy selldown in the past week due to continuous outflow of foreign funds, the FBM KLCI bounced higher. Given the strong rebound on Wall Street overnight, we believe the regional markets and local bourse should trade on a higher note. Nevertheless, the rebound may sit on a shaky ground due to lingering global recession fears and lack of fresh positive catalysts; investors may take the opportunity to sell into strength.

Downside risks still prevail on the global markets given the (i) hawkish tone by the US Fed, (ii) ongoing tension between Ukraine-Russia and (iii) recession fear. However, there are some bright spots in the Malaysia’s market with the upcoming (i) Budget 2023, (ii) around-the-corner GE15 and (iii) rebounding Malaysia GDP. Thus, we like potential budget beneficiary sectors like solar, construction and telco. Meanwhile, for the export oriented segments we favour plastic, selected technology, medical and chemical. For domestic related sector, we may focus on automotive and furniture.

Sunway Real Investment Trust (SUNREIT) is regarded as one of the largest diversified REITs in Malaysia. As of 1H22, SUNREIT owns 19 properties in Malaysia valued at RM8.96bn and maintained a healthy average occupancy rate across each segment; retail (94%), hotel (24%) and office (84%).