Investors are expected to trade on a more cautious stance while focusing on recovery-theme sectors such as consumer, banking, construction, and building material, Malacca Securities said in a note.
It said that it also expects the plantation sector to continue charting higher territories amid the elevated FCPO price. Traders may avoid the technology sector.
The stockbroking firm also said that traders could monitor a few other catalysts like reopening travel borders theme, elevated commodity prices, and recovering construction activities for trading purposes.
On the commodity markets, the crude oil price hovered above US$105 per barrel mark, while the FCPO price remained supported above RM6,300.
Reviewing Bursa’s performance, Malacca Securities said that following the public holiday, the FBM KLCI (+0.8%) resumed trading and snapped a 3-day losing streak, boosted by gains in more than two-thirds of the key index components.
The lower liners also rebounded, while the broader market ended mostly higher, led by the plantation sector (+2.9%).
On the global markets, it said that Wall Street ended mixed as the Dow (+0.7%) rose, but the S&P 500 (-0.1%) and Nasdaq (-1.2%) were dragged by weakness in Netflix (-35.1%) following the weaker-than-expected number of paid subscribers. The European stockmarkets advanced, while Asia stock markets ended mostly higher.
