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.