Indonesia banning the export of palm oil to ease domestic shortages of cooking oil may boost the sentiment for the plantation sector and FCPO, Malacca Securities said in a note.
The FCPO traded above RM6,300 last Friday. On the Brent crude oil, it is hovering above the psychological level of USD105.
On sector focus, the stockbroking firm said that the technology sector may remain under pressure following the overnight plunge in Nasdaq.
It said that the investors may put recovery-themed stocks on the radar prior to the earnings season, in anticipation of improving earnings capability amid smooth economic recovery.
The FBM KLCI registered its third-session gains on Friday as the optimism in banking heavyweights overshadowed the concerns over weakness across regional markets.
However, it said that it expects the overnight tumble on Wall Street may weigh on the local sentiment, especially within the technology sector as the Nasdaq fell below the key 13,000 level.
On the local front, Malacca Securities said The FBM KLCI (+0.2%) edged mildly higher to close above the 1,600 level after recovering all its intraday losses, lifted by gains in selected banking and Petronas-related heavyweights last Friday. The lower liners, however, retreated, while the broader market ended mixed.
On the global markets, the stockbroking firm said that Wall Street took another beating as the Dow (-2.8%) sank on disappointing corporate earnings from Verizon Communications and American Express, coupled with the prospects of more aggressive interest rate hikes.
“The European stock markets also turned downbeat, while Asia stock markets finished mostly negative,” Malacca Securities said.
