Traders are expected to cherry-pick stocks with decent momentum to trade going forward as values could be emerging around this zone despite Wall Street retracing mildly, Malacca Securities said.
It said that investors may focus on recovery-themed sectors such as banking, REITs, and consumer.
On the local bourse, it said that the FBM KLCI was traded higher due to the MSCI semi-annual review and we noticed trading value surged above RM6.12billionn for the session with positive foreign inflows.
Nevertheless, the stockbroking house believes the global sentiment may remain tepid as Ukraine-Russia tension persists and elevated crude oil prices may continue to put soaring inflation in focus; these factors may limit the upside potential of the recent relief rebound. Commodities-wise, the CPO traded around RM6,200, while the crude oil was priced above USD115 per barrel mark.
On the local bourse, The FBM KLCI (+1.8%) trended sharply higher, largely boosted by the effect of the semi-annual MSCI index review rebalancing yesterday.
It said that the lower liners, however, remained mixed, while the broader market ended mostly higher with the exception of the construction (-0.6%) and transportation & logistics (-0.1%) sectors.
On the Global markets, Wall Street turned choppy as the Dow (-0.7%) snapped a six-day winning streak on lingering concern over the persistently high inflation and rising risk of recession due to the tightening of monetary policy. The European stock markets ended mostly lower, while Asia stock markets closed mixed.
