Wall Street Rebound Likely To Bolster Buying Interest in Local Tech Stocks

Wall Street rebound is likely to spill over through buying interest on the local tech stocks, Malacca Securities said in a note.

Meanwhile, it said that it believes trading interest may emerge in the energy sector amid a strong rebound in crude oil prices. “Also, consumer, transportation and logistics sector may turn out to be the winner under the recovery theme,” the stockbroking firm said.

Commodity-wise, the Brent crude oil price improved, trading above USD107 per barrel mark on the back of resumed worries over tight supply. Meanwhile, the CPO rebounded to trade above RM3,900.

On the local bourse, the stockbroking firm said that FBM KLCI (-0.1%) managed to recover most of its intraday losses, but still closed marginally lower for the session. The lower liners, however, ended mixed, while the broader market closed mostly negative with the energy sector (- 0.5%) pullback from the previous session’s sharp rally.

On the global markets, it said that the US stock markets rallied as the Dow (+2.4%) surged on speculation that markets are near the bottom, coupled with the reversal of US Dollar against a basket of currencies. The European stock markets rose in anticipation of the European Central Bank rate hike, but Asia stock markets ended mixed.

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