Banking giants continued to lead Bursa’s outperformance

The FBM KLCI (+1.4%) staged another strong performance, closing at its highest level in 45 months.

Banking giants continued to lead the outperformance, while the lower liners remained downbeat. Among the major sectors, 10 out of 13 closed in red, with the Property sector (-3.2%) taking the hardest hit.

Outperformance

Profit-Taking Expected

After a two-day rally, it is anticipated that mild profit-taking will be on the cards as investors may be quick to lock in recent gains. Renewed volatility on Wall Street could also dampen sentiment.

Banking and Plantation Sectors Remain Strong

Despite potential downside risks, these are expected to be well-cushioned by the solid quarterly financial performance from banking giants and improved foreign fund inflows. Analysts continue to favor the banking sector amid the recent solid corporate earnings. Additionally, the plantation sector is showing promise, riding on better production and export data in recent months.

Lower Liners and Technology Sector Outlook

Lower liners may continue to grapple with volatility amidst the ongoing flurry of corporate earnings releases. Sector-wise, we expect the technology sector to mirror the weakness seen on Nasdaq overnight.

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