Investors may lookout for trading opportunities within the consumer, REITs, and banking sectors over the near term for defensive purposes, Malacca Securities said in a note
It said that investors may stay cautious given the heavy selling pressure on Wall Street and European stock exchanges as ECB increased its interest rate by 50 bps, translating to further volatility on local exchange over the near term.
On the commodity markets, the stockbroking firm said that the Brent oil price remained firm above the USD120 per barrel mark, while the CPO price fell, hovering around RM6,250 after Indonesia launched an export acceleration scheme.
On the local bourse, Malacca Securities said that the FBM KLCI slumped for the sixth straight session amid regional weakness, marking its longest losing streak since January 2022. The FBM KLCI (-0.9%) marked its sixth straight session of losses with more than two-thirds of the key index components closed in the red yesterday.
It said that the lower liners slipped lower, while the REITs sector (+0.1%) that is touted as defensive in nature was the sole bright spot on the broader market.
On the global markets, it said that Wall Street stayed downbeat as the Dow (-1.9%) sank ahead of the key inflation data tomorrow that would shape the Federal Reserve stance. The European stock markets plunged after the European Central Bank increased its key interest rate by 50 basis points, while Asia stock markets ended mostly negative.
