Buying Interest in Banking stocks Amid OPR Rise?

FBM KLCI closed higher on Tuesday. The benchmark index gained 0.70% or 10.48 points to end at 1,512.05 with gainers led by PETDAG, KLK and PPB.

Buying Interest in Banking stocks Amid OPR Rise?

Consensus in expecting Bank Negara to possibly raise rate during the next Monetary Policy Committee meeting next week by 25bps could spark some buying interest in banking stocks this week, says Rakuten Trade.

"For today, we expect the FBM KLCI to trend within the 1,500-1,520 range with the broader market to experience some weakening. Meanwhile yesterday’s reports that Maxis and U Mobile rejecting stake in Digital Nasional Bhd may cause some uncertainties within the Telco sector."

FBM KLCI closed higher on Tuesday. The benchmark index gained 0.70% or 10.48 points to end at 1,512.05 with gainers led by PETDAG, KLK and PPB. Market breadth was mixed with 453 gainers against 406 losers while 425 were unchanged. Total volume stood at 2.86bn shares valued at RM2.71bn.

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Wall Street Ends Lower

Wall Street ended lower as concerns over interest rate hike and slowing economic growth continue to plague overall sentiment. The DJI Average lost 280 points while the Nasdaq declined by 67 points as the US 10- year yield closed higher at almost 3.20%.

"In view of this, we reckon the local bourse to encounter some headwinds today as the regional markets closed on a mixed note yesterday," says Rakuten.

Wall Street ended lower as investors remained wary over the Federal Reserves’ plan to keep raising interest rates. The DJIA lost 0.88% to end at 31,510.43. S&P500 and Nasdaq shrunk 0.78% and 0.56% to close at 3,955.00 and 11,816.20respectively.

Key regional markets closed broadly lower yesterday. Nikkei 225 and STI lost 0.37% and 0.55% to end at 28,091.53 and 3,221.67 respectively. HSI gained 0.03% to close at 19,954.39 while SHCOMP eased 0.78% to 3,202.14.