The FBM KLCI hovered sideways for the past 7 trading days and formed a 2-bar
consecutive rebound with the help from Utilities heavyweights. Meanwhile, the US
stock markets managed to head higher on the back of strong corporate earnings
season that offset the expectations of the Fed which may not cut the interest rates
soon. Concerns over the US regional banks returns, coupled with the weaker
sentiment in China may slowdown the trading activities on the local front ahead of
the Chinese New Year long weekend break. Despite the EIA reported that the US oil
inventories rose by 5.5m barrels last week, the Brent oil price traded above
USD79.00/bbl.

Sectors focus: We expect the trading activities to slowdown ahead of Chinese New
Year mood and the FBM KLCI may consolidate further along 1,510-1520 zone.
Meanwhile, sector that traders may focus include the Technology sector on the back
of solid close in the US, while Consumer, Telco, REITs and Utilities may perform
positively given their defensive characteristics and investors may look into solid
dividend yield as part of their considerations within these sectors.