Gains On Wall Street overnight may prompt investors to look for opportunities within the stock market as most of the stocks were bashed down and oversold over the past weeks, Malacca Securities said in a note.
It said that the technology sector might continue to bounce higher following the overnight rallies in Nasdaq adding that it was positive on sectors like REIT and consumer as safer bets.
On the other hand, the stockbroking firm said that it foresees the government’s decision to retain the ceiling price for chicken will hamper the poultry sector once again.
Reviewing the local bourse, it said that the FBM KLCI (+0.4%) edged a little higher with more than half of the key index components advanced led by industrial products & services and banking heavyweights.
It said the lower liners also rebounded, while the plantation (-0.5%) and energy (-0.2%) sectors underperformed the broader positive market.
On the global markets, the stockbroking firm said that Wall Street extended its lead as the Dow (+2.7%) surged after expectations over inflationary pressure dialled down, coupled with the easing concern over a potential recession. Both the European and Asia stock markets also marched higher.
