Malacca Securities think that volatility may continue in the market over the near term while investors monitor for new developments of interest rate movement in the US.
It said that technology counters might see another slump following the overnight tumble in Nasdaq. “Commodities wise, the CPO price back above RM5,000, while the crude oil price climbed above US$87/bbl mark.
It said that Investors may see buying interest in banking counters following the selloff in the previous session on the back ahead of the Bank Negara’s MPC meeting. “Besides, the plantation and oil & gas counters may gain traction as the commodities price continued their uptrend move,” it said.
Reviewing Monday’s performance, the FBM KLCI (-0.9%) extended its decline as selling pressure remain unabated after more than two-thirds of the key index components closed in the red.
It said that the lower liners ended mostly lower, but the technology (+0.5%) and construction sector (+0.2%) outperformed the negative broader market.
The stockbroking house said that investors took profit in selected heavyweights prior to the Thaipusam holiday, despite a positive cue from China’s stronger-than-expected economic growth in 2021
