Investors May Stay Defensive To Invest Within The REIT’s And Consumer Stocks
Investors may stay defensive to invest in the REITs and consumer stocks as volatility continues to strike the market, Malacca Securities said in a note.
Meanwhile, it said that it expects traders to pick up based on stocks within the technology sector given the overnight rebound on Nasdaq.
The stockbroking firm said that the FBM KLCI extended its whipsaw moves on Friday in a broad sell-off amid growing worries on inflationary pressure and recession fears.
Malacca Securities said that sentiment on Wall Street remained fragile following the mixed performance overnight, we foresee investors to remain cautious soon.
It is said that any of the rebound moves is likely to be short-lived as traders might be adopting a selling-into-strength strategy for now.
The head of NATO warned of a long Russia-Ukraine war, which may prolong inflation and further derail the global economic recovery.
On the commodities market, the Brent oil price traded below USD115, while the CPO price hovered below RM5,500.
The local bourse, the stockbroking firm said that the FBM KLCI (-1.1%) reversed all its previous session gains, taking a cue from weakness on Wall Street overnight as the key index slipped -2.5% WoW.
It said that the lower liners sank lower, while the construction sector (+1.7%) was the sole winner on the negative broader market.
On the global markets, it said that wall Street ended mixed as the Dow (-0.1%) edged mildly lower on a choppy trading session, but the S&P 500 (+0.2%) and Nasdaq (+1.4%) advanced on bargain-hunting activities in beaten-down technology stocks.
The European stock markets ended up mixed, but Asia stock markets closed mostly negative.
