The local bourse is poised for a mild turnaround supported by bargain hunting activities especially in commodity and technology stocks given the flat overnight Wall Street movements, Malacca Securities said in a note
It said that the pickup in oil prices could help lift the energy stocks. Other sectors that we like include shipping, plantation, and consumer sectors.
Nevertheless, it said that the downside risks include global inflation and the prolonged Russia-Ukraine conflicts. Commodities-wise, the crude oil price settled just below USD120 per barrel mark as concern over supply-demand imbalance remained in focus following abating China’s zero-Covid strategy.
On Bursa’s performance last Friday, the stockbroking firm said that the FBM KLCI (-0.8%) recorded its third straight losing streak prior to the extended weekend break and the key index slipped 0.6% WoW.
It said that the lower liners, however, marched higher, while the broader market closed with the technology sector (+1.7%) leading the pack.
On the global markets, Wall Street eked out mild gains as the Dow (+0.1%) rose on the positive news regarding easing of China’s Covid-19 measures re-opening that could boost global economic growth. The European stock markets marched higher, while Asia stock markets ended mostly positive.
