Traders may position themselves within the laggards in the energy and plantation sectors as both the CPO and crude oil prices remain elevated (CPO: RM6,649 and Brent oil: USD110.46), Malacca Securities said in a note.
Meanwhile, it said that it believes the metal-related companies may trade actively under the current environment with elevated aluminium and recovering steel prices, on the back of supply disruption.
On the market’s performance, the stockbroking firm said that the FBM KLCI rallied amidst the mixed regional markets after taking cues from the less aggressive rate hikes tone from the US Federal Reserve and Bank Negara Malaysia kept the OPR unchanged at 1.75%.
It also said that it believes the sharp gains noticed in the commodity-related sectors may persist over the near term as the steep rise in crude oil and crude palm oil prices were deemed advantageous to Malaysia and should translate to earnings in the upcoming quarters.
“Nevertheless, investors may focus on the developments of the geopolitical tensions between Russia and Ukraine,” the stockbroking firm said
