Investors are likely to turn their heads to banking, consumer, and food-related counters with the technology sector that may see buying interest after Nasdaq flashing sign of rebound, Malacca Securities said in a note.
It said that given the setup above, investors may want to avoid the commodities-related sectors especially industrial products, energy, and plantation.
The stockbroking firm said that while it thinks the local bourse is set for bargain hunting activities following mildly higher movement from Wall Street, it opined that the upside could be capped amid the falling commodities environment.
On the local market, Malacca Securities said that the FBM KLCI (-1.4%) endured a volatile session with more than two-thirds of the key index components closed lower.
It said that the lower liners also extended their weakness, while all 13 major sectors on the broader market ended in red with the plantation sector (-5.1%) taking the worst beating after CPO prices slumped.
On the global markets, the stockbroking firm said that US stock markets recovered from their intraday lows as the Dow (+0.2%) rose after ISM Non-Manufacturing data in June 2022 eased to 55.3; which may prompt a less hawkish stance from the US Federal Reserve. The European stock markets rebounded, but Asia stock markets finished mostly negative.
