The FBMKLCI (-0.04%) traded flat, as gains in banking heavyweights were offset by losses in the Telco & Media and Industrial Products & Services sectors. Malacca securities said the decline in the former was attributed to analysts' underweight stance on CelcomDigi, which likely to have triggered selling pressure across the sector.

As for global markets, Wall Street notched higher on a weekly basis as sentiment improved after investors gained more certainty around President Trump's tariff plans. On the contrary, the European market closed lower, while Asian market closed mixed as investors are assessing the impact of President Trump's tariffs plan.

Looking ahead, the local bourse traded flat as selling pressure was observed within the Telco sector, offsetting gains in Banking heavyweights. Meanwhile, Wall Street ended the week higher as sentiment improved after President Trump signed a memorandum outlining plans for reciprocal tariffs on countries taxing US products, instead of imposing immediate targeted tariffs. The US markets will be closed today in conjunction with the Presidents' Day public holiday. In the commodities market, Brent oil is hovering within the tight range around USD 74-75/barrel, given the prospects of Russian-Ukraine peace talks. Gold prices retraced toward USD2,882/ounce, while CPO prices rebounded and traded closer to the RM4,600 level.

Malacca Securities notes that market sentiment remains weak on the local front, driven by foreign institutional outflows and recent strong sell-offs across certain counters including CelcomDigi, Able Global, Notion and YBS International. However, with CPO prices recovering, the house expects Plantation stocks to regain upward momentum.

The Construction sector is likely to continue benefiting from data center construction and JSSEZ initiatives, as well as ahead of the 4Q24 earnings that will be released this month. Lastly, the house said it remains positive on the Genting-related counters despite their removal from MSCI index, given their attractive valuations and dividend yields.