Focus On Commodity Related Stocks

Traders may focus on commodity-related sectors such as the O&G and plantation sectors as CPO price and Brent oil are rallying strongly in their uptrend cycle, Malacca Securities said in a note.

Meanwhile, it said that the building material segment may start to see trading activities amid the rebound in respective commodities.

Reviewing the performance of Bursa, the stockbroking firm said that the FBM KLCI bounced back from Monday’s decline as buying interest was noticed in the glove and banking heavyweights.

However, it believes the rebound in the healthcare sector might be short-lived as Omicron fears should subside given the hospitalisation rate is still under control.

Malacca Securities said that the overall market sentiment should remain positive as FBM Small Cap is on the rise. “Commodities wise, the CPO price remained firm above RM5,500, while the crude oil price hovered above USD90 per barrel mark, suggesting uptrend cycle is still intact,” it said

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