BP Plastics Holdings Bhd (BPPLAS) is regarded as a specialty plastics packaging manufacturer with more than 30 years of experience in the industry and has close to 700 customer base. Their key brands include INFINITY®, PRIORITY® and R-Edge™ and their customised full blown PE films are used across various industries.

The FBM KLCI staged a rebound from last week’s selldown as investors snapped up selected banking heavyweights. Nevertheless, we believe the widespread rout on Wall Street overnight over the aggressive rate hikes concerns will spill over to the regional markets and the local bourse. Meanwhile, foreign funds remained in a selling undertone (5-day net foreign selling: RM261.4m).

The FBM KLCI tumbled along with the regional peers as global sentiment was dampened by fears over global recession under the interest rate upcycle environment. Also, we believe the local bourse will remain volatile at least until the US Fed’s September meeting amidst heightened expectations for hawkish monetary policy decisions.

The FBM KLCI slipped into the negative territory at the closing bell on Friday as sentiment remained fragile prior to the Malaysia Day holiday weekend. All eyes should be on the US Fed’s September meeting and Malaysia’s inflation rate this week. Hence, the local bourse may continue to see sideways trading tone along with the regional peers as investors preparing for further interest rate hikes by the US Fed.

Poh Huat Resources Bhd (Poh Huat) operates at a production space in excess of 3.5m sqf in both Malaysia (1.5m sqf) and Vietnam (2.0m sqf), supported by approximately 6,500 staff force within the group. Poh Huat products are marketed under the brand name of AT Office System and AT Home System and sold to over 60 countries in 5 continents across the globe.

Frontken Corporation Bhd (FRONTKN) is regarded as one of the leading providers of support services to the semiconductor industry, surface treatment and mechanical engineering solutions, serving a wide-range of industries. Its products and services mainly cater for the Malaysia, Singapore and Taiwan market.

The FBM KLCI witnessed another wipe-out along with the regional peers on the back of inflation induced rout. We believe market should remain volatile at least until the FOMC meeting which will be held next week as investors will be waiting for more clarity from the Fed’s Chairman Jerome Powell going forward on the interest rate decision; currently the market is pricing in a 75-basis point rate hike. Meanwhile, geo-political uncertainties could be capping the upside reward at this juncture.

The FBM KLCI remained beneath the key 1,500 level as profit taking activities emerged in selected banking and industrial products & services heavyweights. We believe the market sentiment may turn negative again following a sharp selldown on Wall Street triggered by a stubbornly high inflation, which will prompt the US Fed to maintain its hawkish stance at least for the near term.