Stocks that are related to digital banking licenses may perform slightly positive ahead of the announcement, Malacca Securities said in a note.
It said that remained bullish on the plantation and energy sectors over the near term as the commodity prices are well supported. “The technology sector may extend its rally as Nasdaq soared overnight,” it said
On the local bourse, it said that the FBM KLCI (+0.7%) recovered all its previous session losses, driven by quick bargain hunting activities with more than two-thirds of the key index components advanced.
It said that the lower liners also rebounded, while the broader market closed mostly positive, led by the technology sector (+2.0%).
It said that the FBM KLCI bounced back towards near the key 1,600 level in tandem with the positive regional markets on the back of bargain hunting activities.
On Wall Street, investors piled into the technology stocks following solid earnings from major technology stocks, shrugging off concerns over interest rate hikes and weaker 1Q22 US GDP data.
It said that it expects the bargain hunting activities in the US could spill over to local technology stocks. Also, we expect digital banking license to be announced in the near term. Commodities-wise, the FCPO remained above RM6,900, while the crude oil is now above USD105 per barrel mark.
