Expect bargain hunting again on the local bourse

The FBM KLCI finally closed on a positive note underpinned by some bargain hunting activities.

“Nonetheless, we believe trading would be rather subdued as many will be waiting for the inflationary data on Friday.

“We expect the index to hover within the 1,590-1,600 range as recent selling may have run its course. Meanwhile, crude oil prices remained strong as the Brent crude stayed above the US$85/barrel and many is expecting prices to go higher amid increasing demand and supply deficiency,” says Rakuten Trade.

 The only sectors to close in the red were Plantation, REITs, and Telecom. Gainers were led by the Transportation (+1.89%) and Utilities (+1.51%) sectors.

Bargain hunting day

However, in its Market Outlook, Apex Research says they expect bargain hunting on Bursa today. “We expect bargain hunting to continue in the local stock market today, tracking positive sentiment from the US overnight.

“We still advise investors to trade cautiously, as overall market sentiment remains weak. Still, the improved market sentiment may provide some alleviation towards the market trading liquidity. It is important to monitor for signals of returning foreign funds.

“Economically, all eyes will be on the PCE inflation data from the US, set to be released tomorrow. The Technology and Utilities sectors will continue to be the preferred choices for bargain hunting after Nasdaq and AI-related stocks led gains on Wall Street.”