PETALING JAYA: While investor sentiment is expected to improve as vaccination rates increase, short-term risks, including the evolving pandemic environment and potential financial shocks from tighter liquidity, may keep the local bourse in a prolonged consolidation phase. Although the FBM KLCI closed 2.07 points higher yesterday at 1,514.60 amid talk of economic reopening, year-to-date, the index has declined some 6.9%. Daily new Covid-19 cases remain close to record highs, weighing on consumer sentiment. Notably, more speed bumps are emerging and underlying political risks point to a possibility of continued volatility in the market. Additionally, a “recovery scenario” may have already been priced in, said RHB Research.