The positive sentiment in the local bourse would continue the back of increasing inflows of foreign funds, firm crude oil prices, and decent performance in the banking sector’s results, Malacca Securities said in a note.
Nevertheless, it said that the upside might be capped with the unsettled Russia-Ukraine geopolitical tension. Meanwhile, it said that investors should keep an eye on Bank Negara Malaysia’s interest rate decision on Thursday.
On the sector’s outlook, the stockbroking firm said that it was optimistic on the energy, banking, plantation, and consumer sectors amid the firm crude oil and crude palm oil prices and the recovery in the business activities overall.
Meanwhile, it said that investors might look for bargain hunting activities within the technology sector as selected technology stocks are oversold.
Reviewing the market’s performance, Malacca Securities said that The FBM KLCI (+1.0%) started off the week on a buoyant manner, boosted by gains in more than two-thirds of the key index constituents as the key index recorded +6.3% MoM improvement. The lower liners, however, edged lower, while the broader market closed mostly negative.