THE FBM KLCI (+0.2%) started off the week on a slight positive note, taking cue from the Wall Street’s positive development last Friday.
“The lower liners finished mixed, while the energy sector (+1.5%) outperformed on higher crude oil prices that was lifted by the escalating geopolitical tension in the Middle East,” said APEX Securities (APEX) in the latest Daily Highlight Report.
Towards the global market, Wall Street closed mixed as the Dow (+0.2%) advanced with investors continuing to cheer on the prospects of interest rate cut.
But the S&P 500 and Nasdaq shed -0.3% and -0.9% respectively on weakness in technology stocks. European stock markets ended mixed, while Asia stock markets finished mostly on a positive note.
While the local bourse delivered a positive stance yesterday, gains were relatively measured as sentiment remained cautious following the recent volatility.
“While we expect the FBM KLCI may attempt to build upon yesterday’s gains over the foreseeable future, geopolitical uncertainties in the Middle East may cap any larger potential strides,” said APEX.
The lower liners may undertake a consolidation spell as investors assess the on-going flurry of corporate earnings releases.
Economic wise, investors will be keeping a close watch on US consumer confidence data later tonight.
The escalating geopolitical tension in the Middle East and Libya’s closure of all oil fields which lifted Brent oil prices above US$80 per barrel may trigger greater trading interest within the energy sector.
“We also expect the plantation sector to trade in a positive note after Indonesia President Prabowo Subianto aims to implement mandatory 50% palm oil-based biodiesel by early-2025,” said APEX. – Aug 27, 2024
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