The FBM KLCI continued to decline for the fourth session as profit taking activities
persisted. Meanwhile, the US stock markets ended on a positive note with the help
of Alphabet after announcing Gemini, a new AI model which is expected to compete
against OpenAI, and AMD jumped more than 9% after launching a new generation of
AI chips. However, the non-farm payroll will be very crucial for the market to sustain
another upward move, as the narrative can switch easily from overheating to
recession fears if the non-farm payroll declines significantly. On the local front, we
expect bargain hunting activities to emerge following the 4-day losing streak. On the
commodity markets, the Brent oil prices continue to trade around USD74/bbl as it
lacks fresh catalyst to spur the positive trade.

Sector focus: In view of another new wave of AI-driven catalysts, coupled with
Nvidia’s boss Jensen Huang visiting Malaysia today, we expect the buying support
to return within the Technology sector. Also, the YTL-related stocks could be seen
benefiting under this scenario as they are linked to data-centre as well. Meanwhile,
we opine that O&G counters may remain weak amid the softer Brent oil prices.