Oversold Local Equities May See Mild Rebound

Traders may expect a mild extension of the rebound on the severely oversold local equities market with foreign investors turning net buyers (5-day net foreign fund inflow RM53.7 million), Malacca Securities said in a note.

Nevertheless, it said that gains might be capped by a challenging business operating environment on the back of heightened inflation pressure.

On the commodity markets, the crude oil price rose above USD106 per barrel mark, while the CPO price traded above RM4,000.

The stockbroking firm said that the energy sector should be focused on rising Brent oil prices.

On the other hand, the downstream plantation companies may face challenges on margin as the government is targeting a reduction in cooking oil retail price in the near term amid falling FCPO prices.

Meanwhile, profit-taking activities may emerge within the technology sector as Nasdaq reversed its gains overnight.

On the local bourse, the FBM KLCI (+0.8%) jumped to close higher, driven by gains in selected Petronas-related and plantation heavyweights.

It said that the lower liners also rebounded, while all 13 major sectors on the broader market ended positive, led by the energy sector (+4.01%) as crude oil prices rallied on tighter supplies.

On the global markets, the US stock markets erased all their intraday gains as the Dow (- 0.7%) fell after Apple unveiled their plans to slow hiring and cut Capex in certain divisions to cushion the potential economic slowdown in 2023.  

It said that the European stock markets extended their lead, while Asia stock markets closed mostly higher.

Previous articleLetter To Editor: AAX Refund Practice Is Unfair And Misleading
Next articlePositive Momentum to Challenge Immediate Resistance

LEAVE A REPLY

Please enter your comment!
Please enter your name here