Traders are likely to continue to focus on O&G and plantation sector amid the elevated Brent oil and CPO prices, Malacca Securities said in a note.
Meanwhile, It said that recovery-themed sectors such as consumer, banking, transportation & logistics, and aviation may benefit following the reopening of borders. “Besides, trading interest may build upon construction and building material sector ahead of the GE15,” the stockbroking firm said.
Meanwhile, it said that the global sentiment may stay fragile amid concerns over the more hawkish stance of the US Federal Reserve’s action to tame inflation. “Also, we expect the unresolved tension between Russia and Ukraine could limit the upside potential over the near term,” the stockbroking firm said.
Malacca Securities said that it expects the reopening of travel borders may continue to benefit the economy, while investors could position themselves ahead of the GE15 (albeit the timeline is still uncertain). On the commodities market, both the crude oil and CPO price remained elevated despite a mild pullback overnight.
Reviewing Bursa’s performance yesterday, it said that the FBM KLCI (-0.1%) edged mildly lower on a lacklustre trading mode, dragged by weakness in selected banking and telco heavyweights.
It said that the lower liners, however, remained upbeat, while the broader market closed mostly positive, led by the transportation & logistics sector (+2.1%).
On the global market, it said that Wall Street turned volatile as the Dow (-0.8%) retreated on the back of the hawkish tone from the US Federal Reserve on the interest rate direction and US and EU may impose more sanctions against Russia.
It said that the European stock markets ended mostly negative, but Asia stock markets closed mostly higher.
