Market expected to rebound with bargain hunters

The FBM KLCI is expected to rebound despite regional challenges, driven by potential bargain hunting, rate cuts by the US Federal Reserve and Bank of England, and optimism from the recent Republican election victory.

Bargain hunters

“Despite the disappointing regional performance, we believe the FBM KLCI is poised for a rebound, as bargain hunting activities may emerge bolstered by rate cuts by the US Fed and Bank of England and the continual promising support from the recent Republican election victory.

US inflation data

“We expect the FBM KLCI to float above 1,600 psychological level over time. For today, investors will be focusing onto the release of US inflation data which will provide a clearer picture over the future interest rate direction. Profit taking activities in plantation sector may kick in following the pullback in CPO prices.

“Meanwhile, we favour the export-related sectors such as gloves, furniture and technology, riding onto the strength of the Greenback,”

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Staff Writer

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