There might be bargain hunting activities ahead of the earnings season, especially in the recovery-themed sectors as well as REITs, Malacca Securities said in a note.
It reckons the O&G and recovery-themed sectors such as consumers and REITs will continue to be supported with buying interest.
The stockbroking firm said that the transportation sector may gain traction as the Baltic Exchange Dry Index was at its highest since March 2022.
On the commodity markets, the crude oil price remained above USD112, while crude palm oil was traded lower to RM6,400.
On the local bourse, it said that The FBM KLCI (-1.2%) remained downbeat as sentiment was marred by the weakness on Wall Street overnight, coupled with the prospects of softer economic growth.
It said that the lower liners also stayed downbeat, but the REITs (+0.1%) sector was the sole bright spot on the broader market.
On the global markets, it said that Wall Street extended its decline as the Dow (-0.3%) trended lower as the unemployment rate in April 2022 stood at 3.6%; the lowest since February 2020 may reinforce the US Federal Reserve’s hawkish stance on interest rate environment. “Meanwhile, both the European and Asia stock markets remained downbeat,” it said.
