KUALA LUMPUR (March 30): Kenanga Investment Bank Research has maintained its end-calendar year 2023 (CY2023) FBM KLCI target of 1,610 points, and said the market in the second quarter of CY2023 (2QCY2023) will continue to be beset by a lack of conviction, both to buy and, to a certain extent, to sell, similar to what happened during the greater part of 1QCY2023.

In a strategy note on Thursday (March 30), the research house said that globally, investors are still awaiting the elusive signs of inflation finally being reined in.

“Complicating the situation are mixed signals from the continued strength in the US economy (especially the labour market and, to a certain extent, consumer spending), and the recent banking crisis in the US and Europe.

“Locally, while the new government continues to advance its policy reform agenda in favour of a more progressive, pro-consumer, pro-competition and free-market approach, it will do so at a more measured pace and subtle way, ahead of the six state elections that are widely expected to be held in June 2023,” it said.