Local Bourse May Trade In Positive Tone on The Back Of Gains In Wall Street

The local bourse may trade in a positive tone following the solid gains on Wall Street, Malacca Securities said in a note.

It said that the technology sector should outperform as Nasdaq booked its biggest daily percentage gain since April 2020 overnight.  Meanwhile, the energy sector may gain traction as the crude oil price has shown improvement.

Malacca Securities said that the recent rebound should continue as the comments by US Fed Chairman Jerome Powell have eased investors’ concerns over the interest rate hike outlook going forward.

On the local market, the stockbroking firm said that the FBM KLCI (+0.5%) shrugged off previous session weakness as the buying interest returned and saw gains in selected banking, telco, and Petronas heavyweights.

It said that the lower liners also advanced, while the broader market closed mostly upbeat with the technology sector (+2.5%) taking lead.

On the global markets, the stockbroking firm said that Wall Street cheered as the Dow (+1.4%) climbed after the US Federal Reserve delivered another 75 basis points of a rate hike and guided that the pace of future rate hikes may be less aggressive to tame inflation. The European stock markets also advanced, but Asia stock markets closed mostly higher.

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