The key index may see mild consolidation over the near term with a trading focus on the banking and consumer sectors as crude oil prices tumbled to trade around USD112, Malacca Securities said in a note.
It is said that this is on the back of growing concerns over weaker fuel demand in China after several lockdown measures taken to curb Covid-19 infections.
On Bursa’s performance, the stockbroking firm said that the FBM KLCI (-0.3%) started off the week on a sluggish note as the key index snapped a 3-day winning streak to close below the 1,600 level with two-thirds of the key index components in the red.
It said that the lower liners also halted their winning run, while the broader market ended mostly negative.
On Wall Street’s performance, Malacca Securities said that Wall Street eked out mild gains as the Dow (+0.3%) advanced after US President Joe Biden revealed US$5.8trillion in budget spending, emphasizing deficit reduction, additional allocations for police and veterans, and new social spending programs.
It said that the European stock markets closed mostly higher, but Asia stock markets ended mixed.
On sector focus, the stockbroking firm said that as the crude oil was traded lower, traders may turn their focus from energy to the technology stocks following Nasdaq’s gains overnight.
Meanwhile, it said that traders will position themselves within the recovery-themed stocks ahead of the border reopening on 1st April 2022.
