Buying interest may return, taking cues from the overnight Wall Street performance as investors cheered the positive developments from the peace talks between Russia and Ukraine, Malacca Securities said in a note.
The stockbroking firm said that it expects a broad-based recovery in our local exchange. Meanwhile, on the commodity prices, the Brent crude oil traded lower around the USD110 per barrel mark, while the CPO price hovered around RM6,000.
The FBM KLCI (-0.9%) turned volatile with more than two-thirds of the key index members closed in red as profit-taking activities escalated yesterday. The lower liners, however, closed flat after recovering from their intraday lows, while the construction sector (+0.01%) outperformed the negative broader market.
Wall Street extended its lead as the Dow (+1.0%) advanced for the fourth straight session, lifted by optimism over the progress of negotiations between Russia and Ukraine. The European stock markets also trended higher, while Asia stock markets closed mostly positive.
The stockbroking firm said that as both the crude oil and CPO prices are still in a rangebound mode, it believes traders may avoid the energy and plantation sectors, while the technology stocks may ride on the positive cues from Nasdaq overnight.
Also, traders may position themselves in the recovery-themed stocks such as consumer, financial, tourism and aviation stocks in the anticipation of the borders reopening by 1st April FBMKLCI.
