The FBM KLCI ended lower for the third session given the market sentiment was
affected by margin calls in small cap and lower liners; the FBM Small cap dived
2.07%, while FBM ACE plunged 5.2%. However, the US stock markets rebounded
after the result release from TSMC, where the outlook is positive and projected more
than 20% growth amid booming demand for high-end chips used in AI application.
This has caused the jump in Nvidia, AMD, Broadcom and others. Also, Apple was
upgraded to Buy from Hold by BofA. We believe the overall sentiment in the US may
spillover towards stocks on the local front after the recent selloffs. On the
commodity markets, the Brent oil price traded slightly higher around USD79, as
inventories in the US fell more-than-expected.

Sectors focus: Given the rebound on Wall Street, we expect buying interest to
spillover towards stocks on the local front within the Technology sector. Meanwhile,
we expect small cap and lower liners to take further beating in the near term with the
negative sentiment across the board. However, we opine that fundamentally solid
companies with the trading catalysts revolving the (i) KL-SG HSR, (ii) Johor-region
and (iii) easing requirements of MM2H may be focused.