The plantation sector and the energy sector are seen as favourites, with the rising CPO prices for the former and crude oil prices rallying strongly, Malacca Securities said in a note.
It said that digital banking-related stocks may come into the spotlight as Bank Negara looks to announce the winners next month.
Reviewing Bursa’s performance last Friday, it said the stockbroking house said that FBM KLCI (+0.6%) advanced as investors brushed off the renewed volatility on Wall Street and focused on the 4Q21 GDP data that expanded 3.6% YoY.
It said that the lower liners also extended their gains, while the plantation sector (+4.7%) soared on the mostly positive broader market as CPO prices ascend.
Malacca Securities said that following the announcement of 4Q21 GDP data, we reckon that Malaysia’s economy is largely on track for recovery in 2022 (BNM projection at 5.5-6.5%) alongside the swift Covid-19 vaccination rate.
It said that still, further gains could be muted by the escalating geopolitical tension between both Russia and Ukraine. “Nevertheless, we believe traders may shift the focus towards the upcoming quarterly reporting results in coming weeks,” the stockbroking house said.
