The FBM KLCI finally stalled a 3-day losing streak with a bullish engulfing bar as
bargain-hunting activities have emerged. Also, Wall Street ended the month with a
solid performance, where 3 of the benchmark indices gained more than 8% with the
cooling inflation data; PCE came in within expectations, rising 0.2% MoM and 3.5%
YoY. Given the strong boost on Wall Street, we believe the overall market conditions
could perform better on the local front. On the commodity markets, the Brent oil
prices traded higher towards USD84.5/bbl zone before closing around the
USD80/bbl level as the production cuts from OPEC+ with another 1.2m barrel per
day were below market’s expectations.
Sector focus: We expect the technology sector to trade higher for the session,
tracking the strong Wall Street performance. Meanwhile, from the final day of
corporate earnings, we believe investors will re-assess the quarterly results and
could position for window dressing activities. Sectorial wise, we think the O&G sector
may head lower with the weaker Brent oil movements. Still, we like the Poultry sector
with the solid performance this quarter.