It appears that the recent pullback has come to an end and the local bourse is back on the recovery drive. Given that the sentiment is turning more positive as of late, buying momentum may likely to sustain. Still, we do caution that gains may be measured ahead of the Malaysia state elections, coupled with the renewed volatility on Wall Street. The lower liners are also on a better footing with rotational play resumed ahead of the quarterly reporting season. Going forward, investors will be keeping a close tab on China’s inflation rate and Malaysia’s retail sales data that will be releasing today.

The local bourse ended relatively unchanged as investors are staying on the sidelines ahead of this weekend's state elections. We expect the muted trading sentiment to extend in coming days on the back of the absence of fresh leads. The lower liners may also experience similar movement as uncertainty over the outcome of Malaysia’s state election persists. Going forward, the key focus will be on the release of Malaysia’s industrial production data later today. Meanwhile, the improved market sentiment on Wall Street may see mild upsides permeating towards stocks across Bursa Exchange.

Shenzhou International Group Holdings Ltd (SHENZHOU) is regarded as the largest vertically integrated knitwear manufacturer in China and the country's largest exporter of knitwear. The group produces more than 500.0m pieces of knitted garments with a fabric output of approximately 200,000 tonnes/pa. Some of the key notable clients include Nike, Adidas. Puma and Uniqlo.

Bargain hunting activities alongside the return of foreign funds drove the key index higher as the positive performance was also in line with the mostly higher regional markets. We reckon that the key index may attempt to build onto last Friday’s gains, given that sentiment across regional markets has shown signs of improvement. The lower liners may remain in the consolidation phase with investors prepped for a barrage of quarterly corporate earnings releases, whilst trading activities dwindled. For now, investors should trade in a cautious undertone ahead of the Malaysia states election till the end of the week.

The FBM KLCI recorded its third day of losing streak accompanied by lower trading value, spooked by the renewed volatility on Wall Street overnight. We believe the local bourse performance may mirror the weaker sentiment from Wall Street and the regional markets. Nevertheless, investors may position themselves ahead of the Malaysia state elections and the August quarterly reporting season. Elsewhere, the focus may shift towards the release of unemployment data in the US tonight to provide further clues on the US Federal Reserve’s next action.

The FBM KLCI remained downbeat alongside the weakness across the regional markets, dragged down by the concern of the US credit rating cut by Fitch Ratings and the renewed tension between the US and China. The lower liners are also not faring any better as traders continue to pare holdings ahead of the Malaysia state election. Looking ahead, we reckon further pullback is in store that may mirror the weakness on Wall Street overnight. Meanwhile, investors may also keep a close watch on several key economic data such as the UK's Bank of England's interest rate decision as well as US Non-Manufacturing PMI and Factory Orders to be released later today.

Supercomnet Technologies Bhd (SCOMNET) engages in the production of wires and cables for medical devices, electrical appliances, consumer electronics and automotive components. Scomnet counts New York Stock Exchange-listed Edwards Lifesciences Corp and Denmark-based Ambu as its two main customers, both whom have business dealings for more than 10 years on average.

The FBM KLCI took a breather as selling pressure emerged in selected index heavyweights with foreign fund turned net selling for the first time in 6 trading days. Meanwhile, the S&P Global Manufacturing PMI stood at 47.8 in July 2023; suggesting that sustained slowdown in business conditions has some way to go before demand recovers. Nevertheless, we opined that the pullback is healthy to allow recent gains to be digested. The lower liners are also experiencing a consolidation with traders opting for the wait-and-see approach ahead of the Malaysia state election.