The FBM KLCI is expected to rebound, potentially surpassing the 1,600 mark despite near-term cautious sentiment driven by China’s economic concerns.
Key data, including Malaysia’s Q3 GDP and US retail sales, will be closely monitored. Export-oriented sectors like gloves, furniture, and technology remain attractive amid a strengthening US Dollar.
“We believe the FBM KLCI is poised for a rebound. Expect the FBM KLCI to float above 1,600 psychological level over time. Ongoing concerns over China’s economic outlook may dampen risk appetite across the region in the near-term,” Apex says.
Q3 GDP
Malaysia will be announcing its third-quarter GDP data and the US will release its retail sales report, both of which are expected to draw significant attention.
Profit taking activities in plantation sector may kick in following the pullback in CPO prices. Meanwhile, we favour the export-related sectors such as gloves, furniture and technology, riding onto the strength of the Greenback.
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