Bargain Hunting Expected to Support Market After Extended Holiday Break

Investors are expected to return to the market with renewed interest following last week’s extended holiday break, potentially providing support to equities after recent weakness.

Rakuten Trade believes bargain-hunting activities could emerge sooner rather than later, helping to stabilise sentiment. The research house expects the FBM KLCI to trade within the 1,680 to 1,700 range today as investors assess both domestic and external market developments.

Bargain Hunting

On the technical front, Rakuten Trade highlighted Malakoff Corporation Bhd (MFCB) as a stock to watch. The counter has resistance levels at RM3.14 and RM3.15, while support is seen at RM3.00 and RM2.90.

For regional exposure, the research house identified Bank of China (HK:3988) as a technical trading opportunity. The stock offers a potential upside of 15.9%, supported by positive technical indicators and an estimated dividend yield of 5.0%. Key resistance levels are at HKD5.35 and HKD5.50, while support is pegged at HKD5.20 and HKD5.05.

Rakuten Trade noted that improving sentiment and attractive valuations could encourage selective buying interest, particularly in fundamentally sound counters that have experienced recent price weakness.

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