The technology sector is set to rebound on as Wall Street futures are turning green at this juncture, Malacca Securities said in a note.
Meanwhile, it said it opines that REITs and solid consumer stocks may be seen as defensive in nature and garner trading interest at least for the near term.
However, Malacca Securities said that it believes that the stocks on the local bourse are oversold and could be due for bargain hunting opportunities, but overall market sentiment should remain challenging in the near term on the back of the prospect of a few more rounds of rate hikes; thus, the rebound might be short-lived.
The crude oil price has declined after hitting the range around USD121 and hovering around USD115 due to recession concerns, while the CPO traded around RM5,000 as the market could be expecting a normalising supply following Indonesia’s strategy to speed up shipments and lifting the ban on exports last month.
On the local market, Malacca Securities said that the FBM KLCI (-1.1%) started off the week on a dour note as selling pressure remains largely in the picture.
It said that the lower liners also extended their slide, while all the 13 major sectors on the broader market ended in red with the energy sector (-3.9%) taking the worst hit after crude oil prices tumbled last Friday.
On the Global markets, Wall Street was closed in conjunction with the Juneteenth public holiday, whilst futures markets edged higher.
It said that the European stock advanced after being boosted by bargain hunting activities in beaten-down banks, energy, and travel & leisure sectors, but Asia stock markets ended mixed.
