Buying Continue on Bank & Telco Stocks

Nonetheless, we expect the index to trend between the 1,455-1,470 range today as buying should continue on local equities in particular on Banks and Telco related stocks, says Rakuten

Buying Continue on Bank & Telco Stocks
Photo by Lloyd Alozie / Unsplash

The FBM KLCI ended at a 1-month high of attributed to some bargain hunting activities.

"Though we reckon trading may be rather subdued today with eyes on the rate hikes in the US.

"Nonetheless, we expect the index to trend between the 1,455-1,470 range today as buying should continue on local equities in particular on Banks and Telco related stocks.

"Meanwhile, we believe Bank Negara may look to hike rate by 25bps during the Monetary Policy Committee (MPC) meeting on Wednesday and Thursday hence should provide catalyst on the Banking stocks," says Rakuten Trade.

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Malaysian equities ended broadly higher taking positive cue from Wall Street last Friday amid the improving sentiment. The FBM KLCI gained 0.90% or 13.07 points to close at 1,460.38 with gainers led by PETDAG, DIALOG and PPB. Market breadth was positive with 450 advancers against 365 decliners while 411 counters remain unchanged. Total volume stood at 2.89bn shares valued at RM1.94bn.

Wall Street Lower

As expected, Wall Street closed lower as sentiment turned cautious ahead of the Federal Reserves meeting over the next 2 days. The DJI Average lost 129 points while the Nasdaq declined by 114 points as the US 10- year yield inched higher at 4.05%.

Key regional markets closed mixed yesterday. Nikkei 225 and STI added 1.78% and 1.11% to close at 27,587.46 and 3,093.11 respectively. Meanwhile, HSI and SHCOMP erased 1.18% and 0.77% to end at 14,687.02 and 2,893.48 respectively.

Wall Street ended lower on Monday ahead of the Federal Reserve’s decision on rate hikes. The DJIA lost 0.39% to close at 32,732.95. S&P500 and Nasdaq declined 0.75% and 1.03% to end at 3,871.98 and 10,988.15 respectively.