Bargain hunting may persist, driven by optimism in data centre stocks

This week, the local bourse may adopt a cautious stance, with risks centered on US trade policy. However, improving sentiment and foreign fund inflows could support bargain hunting and rotational play. Data centre-related stocks in Malaysia may continue to gain traction after previous losses, while trading is expected to be subdued ahead of the mid-week festive break.

Sector Focus: bargain hunting

Construction, Utilities, and Property: Bargain hunting may persist, driven by optimism in data centre stocks.

Plantation: Buying interest could rise, following stronger CPO prices due to weaker output in Malaysia and Indonesia.

Banking: Renewed interest may emerge amid global market volatility, given its safe-haven appeal.

FBMKLCI Technical Outlook

The index is trending higher, approaching the SMA50 level. Technical indicators remain positive, with the MACD above the Signal Line and RSI above 50. Key resistance is at 1,600, while support is around 1,530.

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