Elevated commodity prices may provide support for the upcoming reporting season despite the worries of the Covid-19 lockdown in China would slow down the economic growth, Malacca Securities said in a note.
It said that it was positive on the plantation sector amid the elevated CPO price as well as the export ban in Indonesia and the positive momentum on crude oil price may provide support to the energy sector. Following the sharp gains on Wall Street, investors may favour the technology sector.
The CPO price has surged past RM7,100, while the crude oil remained firm above USD110; the latter rose as EU may potentially ban imports of crude oil from Russia.
On the local bourse, it said that the FBM KLCI surpassed the 1,600 level prior to the long weekend as investors took cue from the positive performance on Wall Street.
It said that as the US Federal Chair eased the concern over a more aggressive rate hikes outlook, we foresee the big surge on Wall Street overnight may spill over to the stocks on the local front.
On the performance of the Wall Street, it said that it edged higher as the Dow (+2.8%) advanced for the third session, after US Federal Chairman Jerome Powell signals that a bigger than 50 basis points hikes are not on the table for subsequent meetings. “The European stock markets ended negative, while Asia stock markets closed mostly lower, “it said
