The FBM KLCI digested the recent gains for the third session as profit taking
activities emerged within the banking heavyweights. Similarly, the US stock markets
trended sideways after a long stretch of upward trending movements. We believe
the market is still pricing in the dovish statements from the Federal Reserves,
coupled with the recent inflation data that came in within expectations. Given the US
GDP is still growing for 3Q, and both the PCE and CPI were increasing at a moderate
pace, we expect global markets to trend higher over the near term. Hence, for this
week, we believe buying support may return on the local front, heading into the final
week of window dressing activities. On the commodity markets, Brent oil prices
maintained around the USD80/bbl level.
 

Sector focus: We will be looking for possible trading opportunities within the
Banking heavyweights amid the final week of window dressing activities. Meanwhile,
we like the Technology sector with the rising Wall Street environment. Also, the
Johor-theme may emerge in 1H24 if the government revive the KL-SG HSR project.
Hence, we favour the Construction, Property, Building Material and Utilities sectors.