The FBM KLCI was powered sharply higher, approaching the 1,400 psychological level after foreign funds turned net buyer for the first time in 14 trading days. While yesterday’s gains may provide room for further near-term upsides on the back of the healthier near-term outlook, we think the buying could still be selective after many of the heavyweights have made large strides. We believe that near term focus will be centred towards the state elections which will provide further impetus for the key index’s as well as the lower liners recovery.