Bargain Hunting On Banking, Tech Stocks

The recent talks of the imminence of elections could shift the market focus to construction players, say analysts in the latest market report

Bargain Hunting On Banking, Tech Stocks

Bargain hunting activities may emerge on the local bourse and the interest may focus on Banks and Tech stocks, says Rakuten Trade.

It also says reports of an imminent dissolution of the Parliament to pave the way for elections may shift some interests back on the Construction players too.

"We reckon trading to remain subdued as the regional markets ended in a sea of red last Friday. Therefore, we believe the FBM KLCI to hover within the 1,460-1,475 range today as some bargain hunting activities may emerge since the index is currently trending within its support level with possible interests on the Banks and Technology stocks.

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"Meanwhile, reports on the dissolution of the Parliament soon may shift some interests back on the Construction players as well. As for the Oil & Gas sector, concerns over a global slowdown have seen the Brent crude trending towards the US$91/barrel," says Rakuten Trade.

On Friay, Malaysian equities continued to trend lower amid an uncertain regional performance. The benchmark index slipped 0.08% or 1.13 points to 1,467.31 with losers led by NESTLE, PETGAS and IOICORP.

Market breadth was slightly negative with 415 losers against 379 gainers while 432 remain unchanged. Total volume stood at 2.62bn shares valued at RM2.67bn.

Wall Street Woes

Wall Street endured another poor performance as traders became nervous of the Federal Reserves’ rate hike next week coupled with FedEx earnings warning amid global economic uncertainties.

Wall Street ended lower last Friday. The DJIA fell 0.45% to close at 30,822.42. S&P500 and Nasdaq dropped 0.72% and 0.90% to end at 3,873.33 and 11,448.40 respectively.

The DJI Average lost 139 points while the Nasdaq declined by 104 points as the US 10-year yield edged higher to 3.455%. As for the local bourse,

Key regional markets closed mostly lower last Friday. Nikkei 225 lost 1.11% to end at 27,567.65 while STI added 0.01% to end at 3,268.29. HSI and SHCOMP eased 0.89% and 2.30% to close at 18,761.69 and 3,126.40 respectively.