The local bourse may attempt to build onto yesterday’s gains, capitalising on the recovery move yesterday on the back of the robust retail sales data for December 2021, which is at a record high of RM120.5bn (+3.5% YoY), Malacca Securities said in a note.
It said that still, cautiousness prevails ahead of the US inflationary data scheduled to be released tonight.
The stockbroking house said that it thinks that the lower liners may see extended rotational play on the back of the positive market undertone.
At the same time, the liquidity-driven market that is seeing signs of recovery is a boon for pockets of opportunities, over the interim.
It said that it continues to favour the recovery theme stocks ahead of the 4Q21 GDP data tomorrow. Mirroring the positive move on Nasdaq overnight, the stockbroking firm said that the technology sector is also returning to the spotlight.
It said that the strong rebound in commodities (CPO and crude oil) may transpire to improve trading interest within the plantation and oil & gas stocks.
Reviewing yesterday’s Bursa performance, Malacca Securities said that The FBM KLCI (+1.4%) delivered a solid performance, lifted by the broad-based rally, taking cue from the gains on Wall Street overnight.
It said that the lower liners also marched higher, while the broader market was mostly upbeat, led by the financial services sector (+1.8%) as economic recovery gains traction.
