The recovery-themed sectors including consumers, aviation, and transportation & logistics may be the focus amid the declining Covid-19 cases in Malaysia, Malacca Securities said in a note.
Meanwhile, it said that investors may position themselves in the plantation stocks ahead of the May reporting season. On the other hand, investors may continue to avoid technology stocks in anticipation of hawkish moves in the US.
On Bursa’s performance, the stockbroking firm said that the FBM KLCI slumped alongside regional peers on the back of broad-based selling pressure.
It said that it expects investors to trade in a risk-off mood following the negative sentiment on Wall Street, especially the selldown in technology stocks triggered by rising bond yields ahead of the US inflation data may spillover on our local technology stocks.
Nevertheless, the daily Covid-19 cases dropped below 10,000 in Malaysia should support economic recovery, thereby benefiting the recovery-themed.
Commodities wise, the FCPO rose above RM6,000, while the crude oil price scaled back below USD100 per barrel mark as investors anticipated a lower demand from China amid Covid-19 lockdowns.
On the global markets, it said that Wall Street turned volatile as the Dow (-1.2%) slipped on the unabated concern over the inflationary pressure ahead of the 1Q22 earnings reporting season.
It said that both the European and Asia stock markets closed mostly negative as the latter was affected by the China’s rising Covid-19 cases.
