Malacca Securities Sdn Bhd expects decent earning visibility in the technology sector that will provide a longer investment horizon, although risks might not be abating in the sector due to worries over inflation and upcoming interest rate. It added that consumer and banking counters should be gaining traction due to the recovery theme.
The stockbroking house said that it expects the market to open with a knee-jerk selloff as the market may price in further risk on interest rate hike environment. Nevertheless, it was optimistic that bargain hunting activities will return to support the heavyweights.
Meanwhile, Malacca Securities said that market players will be monitoring the release of the US inflation rate tomorrow. Commodities-wise, the CPO is trading near the RM5,000, while Brent oil is hovering above USD80.
Reviewing yesterday’s performance, it said that the FBM KLCI notched higher after shaking off earlier losses amid bargain hunting activities in selected banking and industrial products & services heavyweights.
