Extended rebound for local market. Will it continue?

The FBM KLCI (+1.1%) extended its rebound from oversold position, in line with the positive regional market performance. Lower liners rebounded higher as investors turned risk-on mode amid improved sentiment.

Energy, Utilities, and Construction sectors led the sectorial gainers, each rising more than 3%, while the Plantation sector was the sole decliner.

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Extended rebound

“On the global stage, sentiments remain jittery as demonstrated by the volatile sessions on Wall Street, with lingering concerns over economic slowdown.

“Back to the local bourse today, the stock market is expected to mirror Wall Street’s overnight weakness was profit taking activities seeps back into the picture. We advise investors to remain defensive and stay on the sidelines due to ongoing global headwinds such as potential US recessions and geopolitical tensions between Iran and Israel.

“Despite maintaining a positive longer-term outlook, we continue to favor the Financial and REIT sectors to outperform others, serving as safe havens during this volatilit,” says Apex.

FBM KLCI Technical Review & Outlook

The FBM KLCI formed another bullish candle as the key index build onto its recovery from the recent sell down. Indicators, however, remained negative as the MACD Line treaded below the zero level, while the RSI remain below 50. Immediate resistance is located at 1,600. Support is envisaged around 1,530..

Global Markets Review

Wall Street experienced a choppy session, reversing intraday gains to close in the red, led by losses in technology stocks following missed quarterly earnings. In contrast, European markets closed higher, with the main index climbed 1.6%. Asian stock markets extended their rebound, buoyed by a less hawkish tone from Japan’s BOJ.