The strong rebound on Wall Street could spill over to the local front, but the normalising commodity prices may weigh on the commodity-related stocks, Malacca Securities said in a note.
It said that the increasing foreign inflows may push stocks on Bursa. The crude oil price has fallen below USD100 per barrel mark, while the CPO price retreated further as investors kept a close watch on Indonesia’s permits addition.
Reviewing Bursa’s performance, it said that The FBM KLCI sank further on the back of unresolved conflict between Ukraine and Russia, coupled with the rising Covid-19 cases in China.
It said that given the pullback in crude oil and CPO prices, it reckons the energy and plantation counters may turn weak after the rally earlier on.
The stockbroking house said that Investors may turn their focus to technology stocks after the rebound in Nasdaq overnight. “Meanwhile, talks over the completion of MRT3 by 2030 may lift the construction-related counters, but earnings wise may register in the later stage. At this moment, the high building material prices could erode their margins,” Malacca Securities said
