Firm CPO price hovering above RM5,500 level should continue to lend support to the plantation sector, albeit profit taking is possible in selected companies following the strong rally yesterday, Malacca Securities said in a note.
It said that meanwhile, the technology stocks may retreat, tracking the Nasdaq overnight plunge on Wall Street.
The stockbroking house said that given the firm crude palm oil and crude oil prices, it expects the sentiment on both the sectors will remain positive at least for the near term.
Meanwhile, Malacca Securities said we noticed consumer and construction sectors have started the rebound recently; the consumer sector is expected to provide solid growth in their upcoming earnings following BJFOOD’s result last week.
Reviewing yesterday’s Bursa Performance, the stockbroking house said that the FBM KLCI (+0.1%) inched higher to register its seventh consecutive winning run, supported by gains across selected plantation heavyweights yesterday.
It said that the lower liners also advanced, but the broader market ended mixed with the plantation sector (+3.9%) leading the pack as CPO prices rallied.
