Advanced CPO Price Will Lend Support To Plantation Stocks: Malacca Securities

Malacca Securities Sdn Bhd believes the advanced CPO price on the back of concerns over supply disruption due to flooding will continue to lend support to the plantation stocks.

It said that besides, the oil & gas counters may be under the limelight as the crude oil price trended higher above US$80 per barrel mark. Also, traders might move back to value stocks with the Fed turning more hawkish.

Reviewing FBM KLCI over the last three days, it said that the FBM KLCI rebounded from its two-day decline as investors were buying the dip, especially in healthcare heavyweights on the back of concerns over the emergence of Covid-19 IHU variant.

However, it said that the local sentiment may turn cautious, tracking the negative performance on Wall Street overnight following the December US Federal Reserve meeting minutes, which suggested the tone is more hawkish and the market may anticipate faster rate hikes and quicker tapering progress.

Meanwhile, it said that the CPO price hovered around RM5,000, while the crude oil price rose above the US$80 per barrel mark.

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