The FBM KLCI charged higher for the fifth session, hovering above the 1,500
psychological level; still supported by the Utilities heavyweights. Meanwhile, the US
stock markets ended the week on a mixed note as the S&P500 snapped the 5-day
winning streak after Intel’s softer revenue forecast. This week, the market should be
watching closely on several events such as (i) China manufacturing PMI, (ii) FOMC
meeting, (iii) jobs data in the US. Overall, we still expect the buying support to sustain
within the Malaysia stock markets. On the commodity markets, Brent oil continues
to climb higher, currently hovering above USD83/bbl mark amid potential China
stimulus packages, coupled with the ongoing tension in the Middle East region.

Sectors focus: With the jump in the crude oil prices following the rising tension in the
Middle East region, we expect the O&G sector to perform well going forward. Also,
shipping rates may spike and the Transportation & Logistics sector is likely to see
an upside move. Meanwhile, the continuation of buying momentum within the YTLrelated
companies last week may continue as it should be supported by the KL-SG
HSR and data centre theme for now. Besides, we do expect the Construction,
Building Material, Property sectors to gain in tandem from these catalysts.