Better than expected GDP forecast a boon for stock market

Malaysia Market Review. The FBM KLCI (+0.2%) ticked mildly higher, driven by gains in close to half of the key index components as the key index climbed 1.1% on a weekly basis. The lower liners also retreated, while the Plantation sector (+1.7%) emerged as the biggest winner amongst the sectorial peers.

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GDP forecast

Market Outlook. Last Friday gains were mainly driven by better-than-expected 2Q24 GDP data that expanded 5.8% yoy which is the highest since 4Q22. “For now, we are keeping our view over an extended consolidation of the local bourse amid the absence of fresh leads. Any downside is expected to remain well cushioned by the return of foreign funds inflow,” says Apex research.

Meanwhile, the lower liners are also taking a back seat as investors took the opportunity to lock in recent gains. Moving into this week, investors will remain focus onto the barrage of US corporate earnings releases.

“Sector wise, we expect the technology sector to remain downbeat, while the oil & gas sector as oil prices tumbled on concern over sluggish demand from China. Amidst the volatile market condition, we remain defensive, favouring the REIT and Telco sectors.”