The strong Nasdaq rebound is likely to spill over to the tech sector in the local front, Malacca Securities said in a note.
It said that traders may favour the banking stocks ahead of the MPC meeting and avoid energy and plantation sectors amid the declining commodity prices.
The stockbroking firm said that all eyes will be on the monetary policy meeting and BNM’s interest rate decision today.
Brent crude oil plummeted to trade near USD100-105 a barrel as concerns over recession weighed on price. The CPO price tumbled below RM4,100 as Indonesian supplies are set to flood the market amid rising export permits.
On the local bourse, Malacca Securities said that the FBM KLCI (+0.2%) recovered some of its previous session losses on signs of easing trade tension between the US and China yesterday.
It said that the lower liners, however, extended their losses, while the broader market ended mostly higher, led by the REITs sector (+0.9%).
On the global markets, the stockbroking firm said that the US stockmarkets ended mixed as the Dow (-0.4%) remained in the red despite coming off from its intraday low, while both the S&P 500 (+0.2%) and Nasdaq (+1.8%) advanced on gains in technology shares. The European stock markets were downbeat, while Asia stock markets closed mixed.
