The FBM KLCI extended the consolidation phase for the second day as the focus turned to FBM Small Cap, which added 0.7% for the session. Meanwhile, the US stock markets charged higher as investors could be pricing in an earlier rate cut following the slightly weaker retail sales. We believe the market will be monitoring the corporate earnings season for trading opportunities as we think most of the companies may exceed expectations as 4Q23 was a recovering quarter based on the US GDP data. Thus, we opine that the buying support may prolong on the local exchange today. On the commodity market, the Brent oil price closed firmer as the US Treasury yields slid and dollar index eased after the US retail sales. 

Sectors focus: Following the contract win by UZMA, coupled with the firmer Brent oil prices, we expect the O&G stocks to trade on a strong note today. Meanwhile, we still favour the (i) Construction, (ii) Property, (iii) Utilities and (iv) Renewable Energy as the attention will be given towards the mega infrastructure projects such as the revival of KL-SG HSR and ongoing RTS link, coupled with the Bayan Lepas LRT talks. Also, the data centre investments in Malaysia will be another catalyst to focus. Meanwhile, for the upcoming earnings, we like Consumer stocks.