Market sentiment is expected to remain fragile as volatility and selling pressure resumed on Wall Street on the back of inflation fears and weak results from retailers, Malacca Securities said in a note.
It said that the hard-hit technology stocks may face further selloff under this interest rate hike environment.
Nevertheless, the stockbroking firm said that it was slightly positive on the recovery-themed sectors. Commodities-wise, both the crude oil declined further, hovering around USD109 and RM6,050 respectively.
On the local bourse, it said that the FBM KLCI (+0.4%) registered its third winning streak in tandem with gains across the regional markets following expectations that China may relax some of its strict Covid-19 restrictions.
It said that the broader market ended mostly higher as the energy sector (+1.2%) outperformed, but the lower liners retreated.
On Wall Street, it said that it turned volatile as the Dow (-3.6%) erased all its previous session gains over the concern over corporate earnings growth amid the steep inflationary pressure. The European stock markets also turned choppy, but the Asia stock markets closed mostly upbeat.
