Buying momentum in selected plantation, banking, and healthcare heavyweights pushed the FBM KLCI to close for the fourth straight session. We believe sentiment is turning positive as the regional markets and Wall Street are on a rebound mode ahead of the CPI data. We think the investors may shrug off inflationary concerns and turn their focus to the upcoming Budget 2023 which will be tabled in October.

The FBM KLCI ended the week on an upbeat note along with the regional markets, mainly lifted by the gains in the banking heavyweights following the OPR hike. We believe the local bourse is on pace for further upside after a broad-based rebound on Wall Street overnight, as investors could be taking a view that the CPI data is likely to decline and the Fed may be looking at a smaller hike going forward. Hence, the focus this week will be on the US and Eurozone’s inflation rate.

DRB-HiCom Bhd (DRBHCOM) is regarded as a diversified conglomerate with core businesses in six sectors, namely automotive, aerospace and defence, postal, banking, properties and services. DRBHCOM has 82 operating subsidiaries and associates, supported by a strong approximately 46,000 workforces.

The FBM KLCI closed on a positive note, tracking the performance on Wall Street. We believe the key index should find firmer footing moving forward following an extension of rebound on Wall Street as softening crude oil price could ease the inflationary concerns on the global front. Nevertheless, the mounting economic risk in China may pose some threat to the global markets.

The FBM KLCI rebounded from a four-day slide, outperforming most of the regional markets as the industrial products & services and utilities heavyweights led gains. We believe the overall sentiment will turn more positive with the rebound on Wall Street overnight. Meanwhile, Malaysia BNM’s and European Central Bank’s interest rate decision will be in focus today, we believe the market is pricing in a 25-basispoint Overnight Policy Rate (OPR) hike at this juncture.

VisDynamics Holdings Bhd (VIS) was established in 2003 and engages in the provision of equipment solution to the semiconductor assembly & test industry with standalone or integrated package handling, electrical test, inspection, tape & reel using their own proprietary technologies. Bulk of their products are exported to overseas, mainly to North Asia and South East Asia.

The FBM KLCI extended its’ losing streak for the fourth straight session as final hour profit-taking activities dragged the key index lower. Global markets outlook remained uncertain amid growing investors’ fear on aggressive interest rate hike following a stronger economic data in the US, as well as a resurgence in China’s Covid-19 stringent measures.

We gather that the aforementioned contract is the second largest single contract secured by KGB after bagging approximately RM420.0m of works at East Malaysia back in 2021. We believe that the aforementioned contract is expected to generate mid-to-high single digit EBITDA margins, which is line with historical average for historical UHP segment’s works.