The FBM KLCI posted a fourth-session decline with selected banking and industrial products & services heavyweights being targeted and led the losses. The overall market sentiment may remain vulnerable amid global economic concern, while investors await the Eurozone’s inflation rate this week. Meanwhile, traders are focusing on the debt ceiling negotiations this week. Although we expect that the bargain hunting activities may kick in on the local bourse amid releasing of more earnings reports, the upside could be limited in the near term.

The FBM KLCI marked the third-session decline as cautious sentiment prevailed prior to the release of Malaysia’s 1Q23 GDP data. On Wall Street, investors are shifting their focus towards the technology sector in the anticipation of the Fed keeping the interest rate unchanged next month. Currently, Nasdaq is relatively stronger than the Dow’s movement. Closer to home, investors may start to position n solid fundamental stocks prior to the earnings season.

The FBM KLCI slid further, tracking the subdued trading tone across the regional bourses as China’s disappointing trade data weighed on the sentiment, while investors were trading cautiously prior to the US inflation data. With the latest CPI data showing signs of easing inflationary pressure, investors are likely to turn more optimistic on the technology sector and the Fed is likely to pause on rate hikes next month.

During the quarter, we gather that average plant utilisation rate rose to 53.6% vs 42.2% recorded in 3QFY23, driven by signs of small green shoots of recovery in demand. Moving forward, HARTA will be embarking onto a 5-year strategic plan that entails operational rationalisation and production efficiency.

Guan Chong Bhd (GCB) engaged in the manufacturing and trading of cocoa-derived food ingredients and cocoa related products. To-date, GCB’s total capacity stands at 337,000MT p.a., ranking the group as the fourth largest cocoa grinder in the world.

The FBM KLCI booked marginal losses amid tepid sentiment prior to the release of the US inflation data. Investors are likely to stay in a cautious mode following a mild pullback on Wall Street overnight. Closer to home, the local market may expect a gradual recovery with the foreign investors turned net buyer (5-day averaged net buying: RM70.4m) for the third consecutive day.

The FBM KLCI started the week on a mildly positive note as the key index took cue from the positive performances on Wall Street last Friday. We believe the upside may sustain as the US Fed commented on a steady interest rate, which means it is likely to that the Fed is hinting for a pause on the interest rate at least for the near term. However, we expect the upside could be capped ahead of the inflation report in the US.

CAB Cakaran Corporation Bhd (CAB) is regarded as one of the largest food producers in Malaysia, operating an integrated poultry processing, retail for poultry and marine products and fast food chains comprising ten Kyros Kebab outlets across Klang Valley. Some notable family brands include Likes, Farm’s Best, Rasa Ria and Segaria.