Investors may tune into stocks with minimal borrowings under the consumer and REIT sectors in view of the interest rate upcycle environment, Malacca Securities said in a note.
Besides, it said that investors may see a cherry pick in energy stocks amid stabilising crude oil prices below USD100. Meanwhile, labour shortage remained a major hurdle to the plantation sector.
The stockbroking firm said that it believes the local bourse may remain sour over the near term, taking cue from the mixed sentiment on Wall Street amid dismal earnings from banks, as well as the selloff in banking stocks in China which spread over from the developer stocks.
Commodities-wise, it said that the crude oil price stabilised below USD100 per barrel mark, while the CPO price continues to tank; trading around RM3,650.
On the local bourse, Malacca Securities said that the FBM KLCI (+0.6%) recovered most of its previous session losses, driven by bargain hunting in more than two third of the key index components yesterday.
It said that the lower liners ended mixed, while the broader market ended mostly positive, led by the healthcare sector (+1.1%).
On the global markets, the stockbroking firm said that the US stockmarkets remained in red despite coming off from their intraday low as the Dow (-0.5%) fell after US Federal Reserve officials backed 75 basis points of rate hike to temper the hot inflation. The European stock markets extended their slide, but Asia stock markets ended mixed.
