Bargain hunting activities are likely to emerge in the recovery-themed and plantation sectors ahead of the reporting season, Malacca Securities said in a note.
It said that traders may focus on the banking sector following the OPR hike. Besides, we believe the energy stocks should trend higher with the elevated crude oil price.
Meanwhile, it said that the increase in value of the Baltic Exchange Dry Exchange above 3,000 may signal an uptrend move in the transportation & logistics sector.
On the commodities, the crude oil was little changed at USD 107 as OPEC+ was struggling to meet the output target, while the CPO price hovered around RM6,400.
On the local bourse, it said that the FBM KLCI (-1.1%) endured another volatile session with selling pressure across the broad, mirroring the weakness of regional peers.
It said that the lower liners turned downbeat, while all 13 major sectors on the broader market finished in red with the technology sector (-4.4%) underperformed.
On the Wall Street ended mostly lower after the Producer Price Index in April 2022 rose 11.0% YoY suggesting that the inflationary pressure likely to be prolonged; the Dow (-0.3%) and S&P 500 (-0.1%) fell, but the Nasdaq rose 0.1%.
It said that the European stock markets ended lower, while Asia stock markets ended mostly negative.
