The FBM KLCI pulled back after hitting resistance along 1,559 and profit taking mode
emerged prior to the MSCI rebalancing activities, that will be effective 1st March.
Meanwhile, the US stock markets ended softer, as traders stayed cautious ahead of
the Core PCE data that will be released tonight; consensus for core PCE stood at
0.4% MoM and it may sway the expectation for the Fed’s first rate cut going forward.
On the commodity market, the Brent oil price pulled back further as the US oil
inventories rose more than expected last week, while Gold price secured above the
USD2,030 zone yesterday. In the cryptocurrency space, Bitcoin surged above US60k
psychological level and nearer towards the ATH zone of USD69k.

Sectors focus: With the negative momentum kicking in, further profit taking activities
may emerge on the broader market with higher volatility seen within the MSCI
rebalancing stocks such as YTL and YTLPOWR. Solid results that traders may take
note today will include the Poultry sector as CCK and CAB see stronger growth in
profits, while UNIQUE, under the fire-fighting segment may continue with its upward
momentum. Besides, KGB continued its earnings momentum for this quarter.