Malacca Securities Sdn Bhd expects O&G stocks to trade actively higher in the near term given the Brent oil price has surpassed the US$86 level. It said that Investors may focus on banking counters ahead of the interest rate decision released by Bank Negara Malaysia this week
Among the things that investors should look for is China’s economic data such as 4Q21 GDP and unemployment rate to be released today and the Bank Negara’s interest rate decision this week. It said that commodities-wise, the CPO price fell below RM5,000, while the crude oil price extended its uptrend move.
Reviewing the market sentiment, it said that sentiment was broadly negative on the local bourse last Friday, taking cues from both the global and regional stock markets.
It said that Sell-off deepened in the technology stocks as concerns over interest rate hikes in the US and overstretched valuations continued to put pressure on the sector.
However, it said that given the mild rebound in Nasdaq, we believe technology stocks may perform a technical rebound move at least in the near term.
