Recession fears will continue to permeate investors’ sentiment in the near term while the local bourse may be poised for a rebound following a strong gain on Wall Street, Malacca Securities said in a note.
It said that investors might be watching the European Central Bank’s meeting and Malaysia’s inflation data later this week.
On the commodity markets, the crude oil rebounded, trading above the USD101 per barrel mark, while the CPO price hovered around RM3,600.
Meanwhile, the stockbroking firm said that selected consumer stocks and REITs may be defensive and outperform during the volatile stock market environment.
It said that traders may trade cautiously within the energy sector as the oil price was pressured due to recession fears, albeit the Brent oil has rebounded above the USD100 level.
The local bourse FBM KLCI (-0.1%) mirrored the weakness across most of the regional peers as the key index recorded -0.5% WoW. Meanwhile, it said that the broader market ended mostly negatively with the energy sector (-0.8%) underperformed, but the technology sector rebounded strongly by 2.03% on Friday.
On the global markets, it said that the US stock markets staged a strong rebound as the Dow (+2.2%) rallied on expectations that the US Federal Reserve may only deliver a 75 basis point rate hike in July 2022 against earlier expectations of 100 basis point hike. “The European stock markets advanced, but Asia stock markets ended mostly negative,” it said
