Malacca Securities said in a note that investors are expected to trade cautiously ahead of the US Fed’s and UK Bank of England’s interest rate decision. The crude oil price was supported above USD120, while the CPO price slid, closing above RM5,900.
The stockbroking firm said that investors may step further away from growth stocks especially technology counters given the risks arising from a global inflationary environment.
Malacca Securities said that the beneficiaries under the inflationary environment may include banking and O&G sectors should remain on investors’ radar screen.
On the local bourse, the FBM KLCI (-1.0%) sank for the seventh consecutive session to close below the 1,500 psychological level as the key index slipped -2.9% WoW.
It said that the lower liners also extended their slide, while all 13 major sectors on the broader market were painted in red with the healthcare sector (-2.5%) taking the worst hit.
On the global market, it said that Wall Street was affected negatively by heightened volatility as the Dow (-2.7%) tumbled after inflation rate in May 2022 rose 8.6% YoY; the biggest jump since December 1981. The European stock markets extended their slide, while Asia stock markets closed mostly in red.
