Investors are likely to stay cautious prior to the Malaysia’s interest rate decision and the US FOMC meeting (later this month), Malacca Securities said in a note.
However, it remains optimistic about the recovery-themed stocks in the 2H22 such as banking, consumer, and tourism.
Besides, the stockbroking firm said that the energy sector might gain traction due to persistent tight supply in the market. Also, investors may scoop up the technology shares tracking rebound in Nasdaq.
Meanwhile, the Brent oil price rose, trading above USD111 per barrel due to supply outages in Libya and expected shutdowns in Norway.
On the local market, the stockbroking firm said that the FBM KLCI (+0.4%) was driven by gains in more than half of the key index components as the key index snapped five straight weekly declines to climb 0.9% WoW.
It said that the lower liners ended mixed, while the broader market closed mostly lower with the healthcare sector (-2.1%) underperformed.
On the global markets, Malacca Securities said that Wall Street edged higher after recouping all its intraday losses as the Dow (+1.1%) advanced as the decline in 10-year treasury yields below 3.0% sparked greater interest within the equities markets. The European stock markets ended mixed, while Asia stock markets closed mostly negative.
