The FBM KLCI tumbled more than 1% as the telco and banking heavyweights succumbed to selling activities yesterday, while the foreign funds have turned net seller for the session. Meanwhile, the ECB maintained its interest rate hike decision to 2% and warns of more increases to fight inflation going forward. With the rising recession fear amid the global interest rate hike environment, we believe the regional and local bourses are likely to trend in the negative tone at least over the near term.

The FBM KLCI ended on a positive note along with most of the regional peers as investors cheered positively after the cooler US inflation data, while foreign funds turned net buyer after 9-day of selling activities. However, cautious sentiment may return following the negative performance on Wall Street overnight as the US Fed Chair’s remarks on further tightening of monetary policy in 2023, coupled with the expected terminal rate of 5.1% going forward to fight inflation. Investors may watch for UK and Europe’s interest rate decision moving forward.

Ranhill Utilities Bhd (RANHILL) is regarded as a sustainable environment and energy solutions specialist that involves in the environment, energy and engineering services sectors. Their water services sector serves 3.8m of population, through 23,628.5km of pipelines and provided electricity services to 1.2m of population in Malaysia.

The FBM KLCI closed lower for the second day prior to the release of US CPI data. With the US posting softer-than-expected CPI print at 7.1% YoY (the Fed’s inflation target is at 2% YoY), the Wall Street has advanced overnight as investors expect either a gradual interest rate hike progress or lower quantum of increase going forward. At this moment, the market believes that the worst of inflation is behind us and the global stock markets may see some recovery.

The FBM KLCI dipped alongside with the regional markets as traders were cautious ahead of the monetary policy meetings across the globe this week. Given that the Wall Street gained momentum overnight in the anticipation of a declining US CPI data, we expect buying interest may set in for the local exchange. Nevertheless, the FOMC meeting outcome on the 14th of Dec will be crucial for the overall stock markets’ direction. At this stage, the market is expecting a softer CPI and the Fed may turn dovish.

Cengild Medical Bhd (CENGILD) is regarded as a specialised healthcare service provider in the diagnosing and treating gastrointestinal and liver diseases and obesity. Their partnership with more than 20 insurance providers in Malaysia provides a wide range of access for patients to facilitate cashless payments in the form of guarantee letters from the insurance companies and third-party administrators.

Despite the slower contribution from Ambu, growth from the medical segment will be anchored by new products coming onto stream in 2023. This include IHS nonelectric syringe infusion system that will see mass production coming onto stream in December 2022, Ambu’s Falcon–C (colonoscope) in 2QFY23 and Plass’ soldier first aid hemostatic product that is still awaiting for FDA approval.

Looking ahead into 2023. OSK aims to rollout approximately RM1.00bn worth of gross development value (GDV) new launches. This comprises a healthy mixture from their (i) existing 2 townships located at Sg. Petani, Kedah and Seremban, Negeri Sembilan as well as (ii) several high-rise residential projects across Klang Valley. After acquiring some 89-ac of land (50-ac at Sg. Petani and 39-ac at Seremban) for a total of RM41.0m year-to-date, OSK will also remain active in their land banking replenishment activities, with the focus on lands adjacent to their 2 townships.