The plantation sector may experience some profit-taking after enjoying a good run as of late, while the financial services sector appears to be gaining traction as economic activities gradually return to pre-pandemic levels, Malacca Securities said in a note.
Business Today had said yesterday that the plantation stocks are set to do well with tighter CPO supplies and India’s move to cut tax on CPO imports.
It said that the technology sector may also see some trading interests on the record high global semiconductor sales registered at US$555.90bn in 2021 as well as the rebound in Nasdaq overnight.
The stockbroking firm said that despite hitting the overbought territory, the key index closed higher as plantation heavyweights rallied on the soaring CPO prices. Along with the strong net buying from foreign funds over the past 7 consecutive trading sessions, it reckons that the positive run could continue and as the key index’s underlying tone is still broadly positive.
Malacca Securities said that it expects rotational interest on the lower liners as traders take advantage of the improved trading liquidity. “Looking ahead, the attention will be shifted towards the US FOMC minutes meeting tonight,” it said.
