KUALA LUMPUR (Jan 9): Hong Leong Investment Bank Research (HLIB) said that in view of the undemanding calendar year 2023 valuations (12.4 times price-earnings versus the 10-year mean of 16.7 times), low foreign shareholdings (November 2022: 20.7%; all-time low: 20.1% in August), and more investors returning from the year-end holidays, it remains hopeful that the FBM KLCI could chalk up a back-to-back gain in January, with resistance levels at 1,493-1,512-1,528.

In a traders’ brief on Monday (Jan 9), the research house said that given China’s border reopening on Sunday, it remains positive on tourism-related beneficiaries, such as Malaysia Airports Holdings Bhd, Capital A Bhd, Genting Malaysia Bhd, Sunway Bhd, IGB Real Estate Investment Trust, Carlsberg Brewery Malaysia Bhd, Heineken Malaysia Bhd, IHH Healhcare Bhd, KPJ Healthcare Bhd, Berjaya Food Bhd, and Focus Point Holdings Bhd.

“Key events to watch out for in January include: i) the US Federal Open Market Committee meetings (Jan 31 to Feb 1) and Bank Negara Malaysia's (BNM) overnight policy rate (OPR) decision (Jan 19) to assess the cumulative impact of a 4.25% rate by the US Federal Reserve and a 1% increase in the OPR; ii) the Umno general assembly on Jan 11 to 14; iii) the start of the US' results season for the fourth quarter of 2022, which will start on Friday with US major banks; and iv) political turmoil in Sabah,” HLIB said.