Profit Taking Activities May Emerge in The Local Front Especially Technology Stocks

Profit-taking activities may emerge on the local front, especially on the technology stocks given the negative performance on Wall Street, Malacca Securities said in a note.

It said that the crude oil price dipped, trading around the USD101 per barrel mark after the members of the International Energy Agency (IEA) agreed to release oil from their emergency reserves. For the FCPO, the price continued to hold above RM5,900.

The stockbroking firm said that it might see a pullback in the O&G sector following the retracement in oil prices.

Meanwhile, it said that traders might avoid technology stock in view of the more hawkish environment going forward.

Nevertheless, we expect the recovery-themed sectors to remain positive amid the recovery in economic activities following the reopening of borders. Also, traders might look into the construction and building materials sectors, positioning themselves ahead of the election.

Reviewing Bursa Performance yesterday, it said that The FBM KLCI (+0.5%) bucked the regional market weakness to climb above the 1,600 level, boosted by gains in selected plantation, energy, and banking heavyweights yesterday.

It said that the lower liners extended their gains, while broader market ended mostly positive, anchored by the plantation sector (+1.8%).

On global markets, it said that Global markets: Wall Street remained downbeat as the Dow (-0.4%) fell following the hawkish remarks from the US Federal Reserve minutes meeting that is pointing to a more aggressive stance towards interest rate hikes. The European stock markets also closed in the red, while Asia stock markets ended mostly negative.

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