• The US GDP continues to grow, while inflationary pressure has been cooling off throughout the year. Thus, the market is pricing in at least 3 rate cuts for 2024.
• Overall external catalysts have been stabilising at least for the near term and investors should focus on domestic catalysts going into 2024.
• We expect infrastructure project could restart next year, while NETR and NIMP will provide decent growth. Besides, the Johor-theme could be emerging as a strong catalyst for 2024. Also, we like the data centre and tech-related investments.
• Given this setup, we expect there will be opportunities within the Construction, Building Materials, Property, Utilities, Technology as well as Consumer & Transportation, while Banking and Telco could be some defensive picks.