Malacca Securities Upbeat On Banking And Commodity Sectors

Malacca Securities Sdn Bhd said that it remains upbeat on the banking, consumer, and commodity sectors amid the potential interest rate hikes going forward and firmer commodity prices.

It said that it expects to see some pullback in the technology counters following Nasdaq’s decline, but it may be an opportunity to bargain hunt given the long-term earnings visibility with the rising adoption of 5G and IoT equipment.

Reviewing Bursa’s performance in the first week of 2022, it said that The FBM KLCI wrapped up the first week of 2022 with gains driven mainly by gains in the plantation heavyweights.

The stockbroking house said that Wall Street, however, continued its losing streak overnight after the US jobs data showing that the unemployment rate is falling in December 2021, which may suggest that the interest rate hike path could be on track or might hasten in 2022.

Hence, Malacca Securities said that investors may take a cautious approach in the technology sector. “Nevertheless, traders may position themselves within the commodity-related sector given the firm CPO and crude oil prices recently; the CPO price hovered above RM4,990, while the Brent oil is above USD81,” it said.

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