Buying Interest In Banking And Consumer Stocks Expected Ahead August Reporting Season

Investors may favour the banking and solid consumer stocks prior to the August reporting season, Malacca Securities said in a note.

It said that the technology sector may see some consolidation due to the drop in Nasdaq overnight and concerns over the interest rate hike in the US this week.

The stockbroking firm said that the broader market may stay positive bias over the near term as it has dropped significantly lower over the past 2 weeks into the oversold region.

It said that this week, investors will be watching closely the US Fed’s interest rate decision. Meanwhile, commodities-wise, the crude oil stabilised around USD103, while the CPO traded above RM3,700.

On the local market, Malacca Securities said that the FBM KLCI (+1.1%) notched higher for the third winning session, driven by banking heavyweights as the key index rose 3.3% WoW.

It said that the lower liners also extended their recovery trend, but the plantation sector (-0.5%) was the sole underperformer on the broader market.

On the global markets, Wall Street retreated as the Dow (-0.4%) fell on the back of weaker earnings from Snap Inc, while preliminary US Composite PMI Index tumbled to 47.5 in July 2022; the first contraction in almost two years.  The European stock markets ended higher, while Asia stock markets mostly positive.

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