The technology sector should continue to trend higher, in line with the overnight gains on Nasdaq, coupled with the solid results from UNISEM, FRONTKN, and VITROX released yesterday, Malacca Securities in a note.
The stockbroking firm said that it believes that the narrative that the US Fed will slow down the pace of interest rate hikes will continue to send positive signals to the regional and local bourses despite the contraction of GDP in the US.
Meanwhile, it said that Indonesia’s decision to lift its restrictions on the entry of its workforce into Malaysia starting 1st August 2022 should benefit the manufacturing and plantation sectors in Malaysia.
Commodities-wise, the crude oil price increased above USD107 per barrel mark, while the CPO price was traded above the RM4,000 level. The gold price has seen some uptick movement.
On the local bourse, it said that the FBM KLCI (+1.4%) delivered a solid performance with more than 20 key index components advanced, cheering on the less hawkish outlook tone from the US Federal Reserve. The lower liners also extended their lead, while the healthcare sector (-0.2%) was the sole underperformer on the broader market.
On the global markets, the stockbroking firm said that Wall Street extended their rebound as the Dow (+1.0%) rose in the anticipation that the US Federal Reserve to be less aggressive in future rate hikes amid potentially slower economic growth in 2H22. Both the European and Asia stock markets ended up mostly upbeat.
