Bargain hunting activities are likely to emerge within the recovery-themed and plantation sectors ahead of the reporting season, Malacca Securities said in a note.
It said that the higher crude oil price may boost the energy sector. “Also, we expect traders to look forward to plantation earnings this month, which could boost the share price over the near term,” the stockbroking firm said,
On the commodities, the crude oil is trading above the USD110 as the market could be looking forward to the reopening in China.
On the local market, the FBM KLCI ended slightly higher despite the mixed sentiment on Wall Street. “Given the persistent inflation worries, it said that it believes the recent rebound could be short-lived and we may anticipate selling pressure to emerge in the near term once the Fed’s quantitative tightening takes place in June and this may affect the sentiment on the technology stocks, Malacca Securities said.
On the global markets, Wall Street ended the wobbly session mixed as downbeat Chinese data sparked fear of a global economic slowdown; the Dow (+0.1%) edged higher, but the S&P and Nasdaq declined -0.4% and -1.2% respectively. “The European stock markets finished mixed, while the Asia stock markets finished mostly higher,” it said.
