The banking sector could stay focused in 2H2022 amid the interest rate up-cycle environment coupled with selected consumer and REITs stocks as the pent-up consumer spending may sustain at least for the near term, Malacca Securities said in a note
It said that tracking the overnight slump on Wall Street, the technology sector may witness further selling pressure.
The stockbroking firm said that concerns over inflation and recession continued to ripple through the market. The Brent oil price fell to USD109 per barrel mark on the back of uncertainties over future OPEC+ output.
On the local bourse, it said the FBM KLCI (-0.5%) extended its losses with more than half of the key index components ended in red and the key index sank -8.0% MoM.
It said that the lower liners also edged lower, while the broader market ended mostly downbeat with the energy sector (-1.1%) underperformed following the softer crude oil prices.
On the global markets, Wall Street finished lower as the Dow (-0.8%) fell after consumer spending in May 2022 declined -0.4% YoY; the first contraction this year suggests that the economy is on a weaker footing. The European stock markets extended their decline, while Asia stock markets ended mostly lower.
