MTAG Group Bhd (MTAG) is regarded the leading labels and stickers printing and materials converting specialist in Malaysia. With a customer base of more than 600, their products are mainly catered to some of the key electrical and electronics companies according to their specific requirements such as shapes and sizes in Malaysia.

The FBM KLCI slipped on Monday alongside with the regional bourses as profit-taking activities emerged following a negative cue from Wall Street. The global markets may see an uneven recovery as investors weighed the escalating US-China tension and some hawkish comments from several Fed officials, which cause a surge in bond yields as investors priced in more interest rate hike. Nevertheless, we believe continuous buying from the foreign funds will support the local bourse.

The FBM KLCI stayed on an upbeat note along with most of the regional peers as the key index crossed above the psychological 1,500 level. Whilst profit taking activities may occur, digesting the recent gains, we continue to expect a relatively positive market undertone moving forward as investors could be shrugging off the concerns over aggressive interest rate hikes in the US.

YBS International Bhd (YBS) specialises in high-precision tools, metal, plastic components and sub-component assembly. The products are catered to high-end exacting applications in markets such as semiconductors, electrical and electronics, computer, telecommunications, automotive, medical and connector.

The FBM KLCI eked out marginal gains on Friday, extending its gains for a third straight session supported by persistent buying from foreign funds. We believe the market undertone will improve as investors may expect a slower pace of interest rate hikes in the US moving forward. Nevertheless, inflation is likely to remain high as crude oil price is still elevated above the USD103 per barrel mark on the back of tight supply situation.

The FBM KLCI rallied in a constructive Thursday session in tandem with the regional peers, taking cue from the strong gains on Wall Street. We believe the narrative that the US Fed will slow down the pace of interest rate hikes will continue to send positive signal to the regional and local bourses despite the contraction of GDP in the US. Meanwhile, Indonesia’s decision to lift its restrictions on the entry of its workforce into Malaysia starting 1st August 2022 should benefit the manufacturing and plantation sectors in Malaysia.

Meanwhile, we note that OMH has successfully modified and converted 2 FeSi furnaces to produce manganese alloys with hot commissioning and performance testing on 27th June 2022 and 25th July 2022 respectively. This will boost total annual production capacity to 333,000-400,000 MT per annum of manganese alloys. In the meantime, 2 units of FeSi furnaces are still undergoing conversion works (demolition works completed and civil modification works are ongoing) that will be able to generate 21,000-24,500 MT per annum of metallic silicon (MetSi) upon completion.

The FBM KLCI reversed earlier losses to end in the positive territory prior to the US Fed’s interest rate decision as concerns over rate hikes have been priced in. We believe the recent rebound should continue as the comments by the US Fed Chairman Jerome Powell have eased investors’ concerns over the interest rate hike outlook going forward. The positive momentum on Wall Street is likely to spill over to the regional and local bourses.