KUALA LUMPUR (Jan 3): The FBM KLCI could tick higher on some mild bargain hunting today, in line with the overnight recovery at most global markets and stay above the 1,660-point level.

Stocks recovered much of their losses on Wednesday as investors took advantage of cheaper shares to ring in the new year, but lingering economic concerns from weak Chinese and European data boosted safe-haven assets including benchmark US Treasury notes and the Japanese yen, according to Reuters.

Data showed Chinese factory activity contracting for the first time in more than two years. The Purchasing Managers' Index (PMI) for the euro zone also reached its lowest level since February 2016, and France's PMI fell in December for the first time in two years. Concerns about the flagging global economy contributed to US stocks posting a loss in 2018 for the first time in a decade, it said.

AllianceDBS Research in its 2019 outlook and strategy note yesterday said macro risks have increased, adding that slower growth, rising interest rates and continued currency volatility will feature in 2019.

The research house expects more sector reforms this year with the property sector as a potential beneficiary while it sees risks for utilities.

“Our end-2019 KLCI target stands at 1,800 pegged to 16x earnings.

“We see opportunities in a) oversold stocks; b) situational plays; c) high quality names; and d) M&As,” it said.

Based on corporate announcements and news flow yesterday, companies in focus today may include: Malaysia Airports Holdings Bhd, Reach Energy Bhd, MQ Technology Bhd, My EG Services Bhd, Rubberex Corp (M) Bhd, XingHe Holdings Bhd and UMW Holdings Bhd.