The FBMKLCI traded higher for the 4th session with solid buying interest within the
Utilities and Banking heavyweights. Meanwhile, Wall Street rebounded higher led by
tech giants such as Amazon, Google, Apple and Nvdia after a brief decline in 10-year
US Treasury yield. Apple had a solid uptick as it confirmed the sale of Apple Vision
Pro by 2nd of February. This week, traders will still be monitoring the inflation data
namely the CPI and PPI to understand the direction of the interest rates going
forward. On the commodity market, Brent oil price plunged more than 3% on the back
of price cuts by Saudi Arabia, offsetting the rising geopolitical tensions in the Middle
East.

Sectors focus: As the Utilities sector has been rallying strongly over the past few
days, we expect profit taking activities to emerge. Meanwhile, the other sectors that
have room to grow may include the Consumer, Transportation & Logistics,
Technology sectors as well as the Industrial Products sector. We believe Building
Material may benefit from the recent rally in Construction and Property sectors on
the back of the KL-SG-HSR theme and the easing requirements of MM2H, while the
heightened geopolitical tension in the Middle East could lift the shipping industry.