Volatility is expected to persist given the higher-than-expected US CPI data and investors may focus on the accelerated inflation rate which may trigger a more hawkish tone from the Fed going forward on its monetary policies, Malacca Securities said in a note.
On the commodity markets, the Brent crude oil price bounced higher, trading around USD105 per barrel while the FCPO price hovered above RM6,100; both were firmer on the back of easing Covid-19 conditions in China.
On Bursa’s performance, it said that The FBM KLCI (-0.5%) was dragged down by more than two-thirds of the key index components in the red, while foreign funds snapped 15 consecutive days of net buying streak. The lower liners remained downbeat, while the broader market ended mostly lower with the healthcare sector (-1.4%) taking the worst hit.
On the sector focus, the stockbroking firm expects to see buying interest continue to revolve around the plantation and O&G sectors amid firmer Brent crude oil and FCPO prices.
Meanwhile, the construction and building material sectors are gaining traction as investors are putting government-related counters on the radar amid speculation of an early election.
On the overseas markets, Wall Street erased all its intraday gains to finish mildly lower as the Dow (-0.2%) fell after the jump in WTI crude oil price back above USD100/bbl stoked further inflationary pressure fears. Both the European and Asia stock markets ended mostly negative.
