The local bourse saw late buying support as the FBM KLCI ended at almost the 1,450 level but for today, Rakuten Trade says there may be some buying interests of telco stocks.
"The finalization of the merger between Celcom and Digi may prompt some buying interests on the Telcos today.
"Meanwhile, the Brent crude slipped to below the USD88/barrel as China cuts its oil purchases thus Energy stocks may face with some headwinds today," it says.
It adds that the mood on the domestic market will be cautious after the hung parliament results from the GE15.
"We reckon mood on the domestic market to be cautious following the results from the just concluded GE15. As we enter into a new normal within the political scene, local equities may experience some selling today until a new Government is formed. Therefore, we expect the index to trend between the 1,435-1,455 range today," it says.
Stocks End Higher On Friday
The FBM KLCI closed off the day low attributed to bargain hunting activities ahead of the 15th general election (GE15). The benchmark index closed 0.06% or 0.94 points higher to 1,449.32.
Gainers were led by PETDAG, PETGAS and HLBANK. Market breadth was negative with 522 losers against 315 gainers. Total volume stood at 2.63bn shares valued at RM1.85bn.
Wall Street Higher
Wall Street ended higher on last Friday after falling for two days. The DJIA gained 0.59% to end at 33,745.69. S&P500 rose by 0.48% to end at 3,965.34 while Nasdaq closed flattish with 0.01% higher to end at 11,146.06.
Though Wall Street closed in positive territory last Friday, overall sentiment was cautious on concerns of more rate hikes to quell inflation. The DJI Average rose 199 points while the Nasdaq was flat as the US 10-year yield surged past the 3.83% mark.