Range-bound trading on the local bourse is expected prior to a series of economic data releases for the week including Malaysia’s unemployment rate, European Central Bank interest rate decision, as well as inflation data from China and US, Malacca Securities said in a note.
Nevertheless, it said that the overnight jump on Wall Street may shed a light on the local bourse, especially in the technology sector. Commodities-wise, the Brent crude oil traded above USD120, while the CPO price hovered above RM6,500.
On sector focus, it said that it believes that elevated crude oil and CPO prices should bode well for respective sectors’ earnings, eventually lifting share prices.
Also, It expects traders to focus on the technology stocks given the rebound in Wall Street. Meanwhile, the consumer, REITs, and transportation and logistics sector will benefit as Malaysia has transitioned into the endemic phase.
On the local bouse, it said that the FBM KLCI (-0.8%) drifted lower for the fourth consecutive session, dragged by weakness in selected plantation and oil & gas heavyweights yesterday.
The lower liners also turned weaker, while the broader market closed mostly negative with the plantation sector (-1.6%) underperformed.
