Investors May Favour Recovery Theme Stocks

Investors may favour consumer, tourism, and building material stocks in the anticipation of improving economic activities, Malacca Securities said in a note.

Besides, it expects the plantation sector to stay firm amid the recovery of FCPO prices.

However, the stockbroking house said that the technology sector should see cautious trading following the decline on Nasdaq overnight amid the expectation of a more hawkish tone from the Fed on the monetary policies going forward.

On Bursa’s performance, it said that The FBM KLCI wrapped up the week above the key 1,600 level, building up a positive sentiment on the local bourse as Malaysia could be viewed as a defensive market under this uncertain environment.

It said that in view of the mixed performances on Wall Street overnight, we believe investors should favour stocks under the recovery theme while avoiding the technology sector.

 Meanwhile, Malacca Securities said that several economic releases for this week include the US inflation rate and the European Central Bank interest rate decision which will be released on 12th and 14th April 2022 respectively. On the commodity markets, the crude oil hovered above USD100, while the CPO was traded firmer above RM5,900.

On the global markets, it said that Wall Street ended mixed as the Dow (+0.4%) extended its lead, but the S&P 500 and Nasdaq edged lower by 0.3% and 1.3% respectively, dragged down by the selling pressure in technology stocks. The European stock markets rebounded, while Asia stock markets closed mostly upbeat.

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