The strong rebound and follow-through interest on Wall Street are likely to spillover as buying support on the technology stocks in the local front and traders may focus on the recent bashed down technology leaders as some of their earnings have stabilised in the recent reporting season.
However, it expects the upside to be limited given the unresolved Ukraine and Russia tension. Nevertheless, we are optimistic on both the energy and plantation sectors with the elevated Brent oil price hovering above USD115, while the CPO is trading above RM6,500.
The stockbroking firm said that the commodity markets are still elevated, and traders may favour the energy and plantation stocks. Meanwhile, for the recovery theme play, we will look into the consumer, utilities, or REITs sectors.
On the local bourse, the FBM KLCI (+0.4%) edged higher, boosted by gains in selected banking heavyweights yesterday. The lower liners ended mixed, while the broader market also closed mostly higher with the technology sector (+2.3%) leading the winners to list on bargain hunting activities.
On global markets, it said that Wall Street extended its recovery as the Dow (+1.6%) rose after the latest Federal Reserve report suggests that the inflationary pressure may be temporary, while the USD retreated against a basket of currencies. The European stock markets also advanced, while the Asia stock markets closed mostly higher.
