The strong rebound on Wall Street overnight of over 2.0% may see further recovery for the local bourse supported by bargain hunting activities, Malacca Securities said in a note.
It said that it believes most of the sectors that have been bashed down earlier should gain traction at least for the near term.
Nevertheless, the stockbroking firm said that investors are still weighing on the risk of recession arising from global inflation, hence traders may adopt a sell-into-strength strategy.
On sector focus, it said that the announcement of ceiling price removal for chicken and eggs effective from July 2022 should offer some reprieve to the poultry sector.
Besides, it said that investors may scoop up technology shares as buying interest may emerge following the overnight rally on Wall Street.
On the local bourse, it said that the FBM KLCI (+1.2%) recovered all its previous session’s losses as bargain-hunting activities took precedence with more than two-thirds of the key index components advanced yesterday.
It said that the lower liners also rebounded, while the REITs sector (-0.01%) was the sole underperformer on the broader market.
On the global markets, Wall Street resumed trading in a buoyant manner as the Dow (+2.2%) rallied after investors turned more optimistic after the market consensus is pointing towards a slowdown in inflation in the coming quarters. Both the European and Asia stock markets closed mostly upbeat.
