Investors may position themselves within the plantation and oil & gas sectors while waiting for the earnings season in view of elevated commodity prices, Malacca Securities said in a note.
Meanwhile, it said that the technology stocks may be caught in a rout following the steep sell-down in Nasdaq overnight. Besides, we may look into the consumer and banking-related stocks in view of the reopening of travel borders.
On the local bourse, the stockbroking house said that the FBM KLCI staged a rebound amidst a mixed regional market, powered by bargain hunting activities following Monday’s decline.
It said that it recovered some of its previous session losses as bargain-hunting activities emerged in more than two-thirds of the key index components yesterday. The lower liners also rebounded, while the plantation (- 0.7%) and property (-0.01%) sectors underperformed the positive broader market.
However, Malacca Securities said that it anticipates a further downside risk on the local bourse following the steep slide on Wall Street overnight, especially within the technology sector.
Meanwhile, investors may position themselves in companies with solid earnings prospects ahead of the earnings season. The FCPO was traded above RM6,400, while the crude oil price sustained above USD100.
On the global markets, it said that Wall Street took a beating as the Dow (-2.4%) sank on sluggish corporate earnings from General Electric Co (-10.3%), while Tesla Inc (-12.2%) plunged after Elon Musk agreed to purchase Twitter Inc (-3.9%). The European stock markets ended mostly lower, while Asia stock markets
