The lower liners may face another round of selloffs as investors are likely to unwind their position as market uncertainties prevail, Malacca Securities said in a note.
Meanwhile, the Brent oil price advanced to close a hair below USD120/bbl, but the CPO slipped below RM5,500/MT.
Malacca Securities said that amid the unabated volatility, we think the sectors that are defensive in nature such as consumer products and REIT may see improved trading activities.
Meanwhile, the stockbroking house expects selling pressure to re-emerge within the technology stocks that may mirror the weakness on Nasdaq overnight.
On the local bourse, it said that the FBM KLCI (+0.9%) rebounded, mainly driven by bargain hunting activities after more than two-thirds of the key index components advanced yesterday.
It said that the lower liners, however, extended their decline, while the broader market ended mixed with the plantation sector (-1.4%) underperformed.
On the global markets, the stockbroking house said that volatility returns to Wall Street as the Dow (-2.4%) sank on mounting concern over the recessionary risk as the US Federal Reserve’s hawkish move may not be able to tame the inflationary pressure. The European stock markets also tumbled, but Asia stock markets ended mixed.
