The FBM KLCI recovered from three-session losses amid improved sentiment on Wall Street. However, we believe the global sentiment may remain weak as selling pressure returned on Wall Street with the recession worries returned in the expectation of further monetary tightening from global central banks. Meanwhile, investors might be eyeing the quarantine cutting measure for overseas travellers from next month in China, but having cautious tone given the Covid-19 pandemic is still not resolved. Nevertheless, we expect the downside risk shall be cushioned by the return of foreign funds.

The FBM KLCI fell amid subdued trading as lingering worries over the recession concerns persisted. However, foreign investors have turned net buyer following the recent selldown. Given the strong rebound on Wall Street overnight, we believe the buying interest may spill over to the regional markets as well as the local bourse amid improving consumer confidence environment in the US.

Total packaging solutions provider with established track record that is underpinned by its manufacturing capabilities of corrugated paper packaging products as well as fast and lean inventory management system. We project core earnings to be driven by normalising economy in FY24, as well as the group’s strategies to penetrate the northern region of Peninsular Malaysia within the solar PV and medical devices industries. DS Sigma is valued by pegging its FY24f core EPS of 5.0 sen to P/E of 16.0x, leading to a FV of RM0.80.

Padini Holdings Bhd (PADINI) engages in the distribution and retail of garments, ladies’ shoes, bags, belts and other accessories through the multi-brand Padini Concept Stores and Brands Outlet stores under several household brands such as Vincci, Vincci+, Vincci Accessories, Tizio, Padini Authentics, PDI, Padini, Seed, Miki and P&Co. To-date, Padini operates more than 100 retail stores, covering 1.5m sqf of gross floor area.

The FBM KLCI was in line with the regional markets’ slump after Bank of Japan widened the allowable band for long-term yields to 50 basis points from 25 basis points previously. Nevertheless, we believe the key index is poised for a rebound amid reducing selldown from foreign investors, as well as the rebound move on Wall Street overnight. Also, window dressing activities may kick in towards year end.

The FBM KLCI closed lower in tandem with the regional bourses as lingering recession fears continued to weigh on sentiment due to the rising interest rates environment throughout the globe. While bearish sentiment persisted on the global front, we believe the passing of the motion of confidence for the 10th Prime Minister will strengthen the confidence of investors on the local bourse moving forward.

Malaysian Bulk Carriers Bhd (MAYBULK) is regarded as the largest drybulk shipowner in Malaysia that engages in international shipping. MAYBULK presently owns and operates a fleet of vessels which includes dry bulk carriers ranging from 36,000 DWT (Handysize) to 85,000 DWT (Post-Panamaxes) and product tankers ranging from 47,000-48,000 DWT.

The FBM KLCI ended the trading week of on a positive note as buying momentum in the plantation stocks led the key index higher amid the FTSE rebalancing activities. Meanwhile, the selling pressure on the US stock markets could have overdone after falling from 34,700 to 32,600 zone and may be due for a technical rebound, despite mounting fears over recession risks. On the local front, the reconvening of the Parliament session, coupled with the vote of confidence will be a formality process to build investors’ confidence, hence the downside risk could be limited with the ongoing window dressing activities.