Recovery-themed sectors should gain traction, including consumer, REITs, or utilities stocks amid continuous economic reopening activities following the upliftment of international borders, Malacca Securities said in a note.
Also, on commodity-related, It believes O&G may still be in focus on the back of firmer Brent oil price.
The stockbroking house said that the FBM KLCI rose in tandem with the regional peers on the back of continuous bargain hunting activities.
It said that Wall Street saw a recovery overnight, and it expects to see improving trading activities on the local front, especially in the technology sector with Nasdaq trading above 12,000.
Nevertheless, the stockbroking firm said that it expects traders to remain cautious going into the final 2 days of the reporting season.
On a side note, the FBM KLCI semi-annual review will be announced on 2nd June 2022. Commodities-wise, crude oil is traded at around USD119, while CPO is priced at around RM6,300.
On the local bourse’s performance last Friday, Malacca Securities said that the FBM KLCI (+0.4%) marched higher for the third straight session, driven by gains in more than two-thirds of the key index components.
The lower liners, however, were downbeat, while the broader market ended mixed with the construction sector (+1.4%) outperformed.
On the global markets, Wall Street continued its winning run as the Dow (+1.8%) after the consumer sentiment index fell to 58.4 in May 2022; the lowest since August 2011 may result in potentially slower tightening from the US Federal Reserve. Both the European and Asia stock markets also extended their gains.
