Tech Gains Lead Market Rally As Investors Eye Key Inflation Data, Fed Direction – BusinessToday

Tech Gains Lead Market Rally As Investors Eye Key Inflation Data, Fed Direction – BusinessToday

The FBM KLCI (+0.21%) ended higher amid buying pressure in the Financial Services and Utilities heavyweights, in line with the regional markets’ performances, tracking the overnight gains from the Tech giants in the US, Malacca Securities (MSSB) said in a note today (July 10).

The Technology sector (+1.31%) was the best performing sector.

At 9.20am, the FBMKLCI dipped -0.03 points to open at 1,613.71.

The Day Ahead
Both the FBMKLCI and FBM70 managed to close higher, but the Small Cap index ended lower as profit taking activities were noticed across the board.

On Wall Street, the S&P500 and Nasdaq indices traded higher, charting new territories led by technology related stocks, as Jerome Powell expressed concern that holding interest rates higher for longer may dampen economic growth.

Additionally, traders will be monitoring the upcoming CPI and PPI data this week in order to understand the direction of the Fed going forward.

On the commodity markets, Brent oil settled slightly below USD85 amid demand concerns despite the decline in oil inventories last week, while the gold price traded firmly above USD2350.

However, the CPO has fallen 5-day consecutively and is trading below RM4,000.

Sectors focus: Most of the sectors are on an upward trending tone, except the Plantation, Consumer, and Telco sectors.

Hence, they reckoned that investors may position themselves within the data center catalysts and the upcoming announcement on KL-SG HSR projects.

They believed these catalysts would boost the appetite for more exposure within the Construction, Property, Building Material, and Utilities stocks.

Also, they liked the recovering trend within the Glove stocks, where it might have bottomed out over the past one year.

Bloomberg FBMKLCI Technical Outlook
The FBM KLCI index ended marginally higher towards the 1,614 level.

The technical readings on the key index were positive with the MACD histogram forming another positive bars and RSI surged above 50.

The resistance is envisaged around 1,629-1,634 and the support is set at 1,594-1,599.

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