The proposal by Malaysia’s commodities ministry to cut the export tax on palm oil by half may propel the plantation sector, Malacca Securities said in a note.
It says that it anticipates investors to continue to buy the dip ahead of the earnings season, but the market sentiment may be tested by concerns over the impact of Cukai Makmur, mixed performances on Wall Street overnight, and the upcoming BNM’s interest rate decision. Commodities-wise, the CPO and crude oil prices hovered around RM6,300 and USD102.
Reviewing the local market’s sentiment, the stockbroking firm said that the FBM KLCI (+0.4%) staged a mild recovery from a 3-day slump as bargain hunting activities in telco-related heavyweights yesterday.
Malacca Securities said that the lower liners, however, remained downbeat, while the broader market ended mixed with the telecommunications & media sector (+1.3%) leading the winners’ list.
On the global market, it said that the Wall Street ended mixed as the Dow fell 0.3% but the S&P 500 (+0.3%) and Nasdaq (+1.0%) rose on bargain hunting from the selloff in technology
