The focus is on Tech Stocks

The FBM KLCI closed broadly higher on Last Friday, leveraged by the much stronger regional performance while key regional markets rose tremendously following the positive performance on Wall Street.

The focus is on Tech Stocks
Technology stocks should be in favour today amid the easing fears of more rate hikes - Photo by Jason Briscoe / Unsplash

The FBM KLCI closed at a month high to almost the 1,470 mark spurred by buying from foreign funds again but this week, the focus starts on tech stocks, say analysts.

"We reckon uptrend for the local bourse to remain intact hence expect the index to possibly hover within the 1,460-1,475 range today despite some intermittent profit taking activities.

"Technology stocks should be in favour today amid the easing fears of more rate hikes. The Ringgit has also strengthened against the USD from RM4.70 on 11 Nov to RM4.62 currently should be good news for importers.

"In addition, recent refinement of China’s Covid rules may see positive effects within the region. Crude oil prices also closed higher due to the weaker USD with the Brent crude closing above the USD96/barrel level," says Rakuten Trade.

Stocks closed higher

The FBM KLCI closed broadly higher on Last Friday, leveraged by the much stronger regional performance.

The benchmark index strengthened 1.27% or 18.47 points to close at 1,468.21. Gainers were led by NESTLE, PMETAL and PPB. Market breadth was positive with 667 advancers against 275 decliners. Total volume stood at 3.43bn shares valued at RM2.42bn.

Key regional markets rose tremendously following the positive performance on Wall Street. Nikkei 225 and STI surged 2.98% and 1.74% to end at 28,263.57 and 3,228.33 respectively. Meanwhile, HSI and SHCOMP soared 7.74% and 1.69% to end at 17,325.66 and 3,087.29 respectively.

Wall Street's optimism

Wall Street closed in positive territory fueled by optimism of easing interest rate hike concerns. As a result, the Nasdaq jumped by 209 points as the DJI Average ended a marginal 32 point higher. Meanwhile, the US 10-year yield remained at the 3.81%.

Wall Street ended higher as investors speculated that the Federal Reserves will be less aggressive in interest rate hike following signs of cooling inflation. The DJIA advanced 0.10% to end at 33,747.86. S&P500 and Nasdaq jumped 0.92% and 1.88% to end at 3,992.93 and 11,323.33 respectively.

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