Further buying interest is expected in the technology sector following Nasdaq’s strong rally overnight, Malacca Securities said in a note.
Meanwhile, it remains optimistic about the energy sector given the firm crude oil price.
It said that the FBM KLCI extended its gains on the back of returned buying interest in selected commodity-related heavyweights led by PMETAL.
The stockbroking firm said that It said that it is expecting a broad-based recovery on the local bourse that could extend in tandem with the rebound on Wall Street overnight following the release of retail sales data in April and optimism on China’s announcement on easing lockdowns.
The crude oil has taken some pullback on the commodity markets, but hovering above USD110. Meanwhile, the CPO is priced at around RM6,150. Do note that Indonesian farmers protested the export sales ban on palm oil, which may potentially cause an impact on CPO price.
On Wall Street, Malacca Securities said that it marched higher as the Dow (+1.3%) was spurred by the solid retail sales data in April 2022 that expanded 8.2% YoY; suggesting that consumer spending remains robust despite the high inflation. The European stock markets also advanced, while the Asia stock markets ended positively.