The FBM KLCI delivered a strong performance yesterday on a broad-based rebound, whilst the economy continues to demonstrate resilience after the unemployment rate in May 2023 was held steady at 3.5%. We expect an extended recovery to take place over the near term as investors are likely to bargain hunt on beaten down and oversold stocks. The calmer market condition also presents opportunity for rotational play amongst the lower liners, though we caution that the pace of the recovery may be limited. Elsewhere, investors may keep a close watch on the US inflation rate that will be released tomorrow night and may provide further clues over the direction of interest rate in the US.
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