The FBM KLCI pulled back for the second session consecutively prior to release of
YTLs’ results. Over in the US, Wall Street charged higher as the sentiment turned
bullish after the strong set of results from Nvidia; the Dow and S&P500 closes at
record highs. Meanwhile, the flash US manufacturing PMI rose to 17-month high of
51.5 (consensus: 50.5), while the S&P flash US services PMI dipped to a 3-month
low of 51.3 (consensus: 52.4); both in the expansion territory. On the commodity
market, the Brent oil price still holding above USD83/bbl amid ongoing conflicts in
the Middle East, coupled with the US inventories rising less-than-expected.

Sectors focus: With the positive sentiment observed in the US following Nvidia’s
results, we believe the buying interest may extend following yesterday’s momentum
in the Technology sector on the local front. Meanwhile, the FBM KLCI’s upside may
be capped by the flattish YTLPOWR’s results. Other notable result includes
PWRWELL, where the earnings have increase strongly due to some data center and
solar-related projects. Besides, MSM saw a turnaround on a QoQ basis, but it might
have been reflected in the share price, thus the market may perform a sell-on-news
strategy.