 The KLCI fell 3.2% mom in Jun 21 to close at the year’s low of 1,532 points as market sentiment was hit by persistently high new Covid-19 cases despite FMCO and the PM has been hospitalised since 30 Jun.
 The market also witnessed lower monthly average trading value in Jun 21 (lowest level since Apr 20), suggesting declining trading interest by participants despite various stimulus measures announced.
 KLCI historically posted +1%/+0.7% mom returns over the past 10/43 years in July.
 The KLCI currently trades at 2.5 s.d. below its 3-year average P/E of 16.2x, reflecting pessimism about the country’s recovery from Covid-19. There is room for re-rating if vaccination rates hit government targets.
 Key events to watch out for in Jul : MPC meeting on 8 Jul, US FOMC meeting on 28 Jul and dates on potential reopening of Parliament, which could be decided on 7 Jul.