Investors may focus further on the banking sector in the anticipation of firmer earnings that bode well under the interest rate hike environment, Malacca Securities said in a note
It said that the plantation stocks mays may face selling pressure following Indonesia’s announcement to uplift the palm oil export ban.
The stockbroking firm said that Investors may remain cautious over the near term as current market sentiment could be exacerbated by the ongoing volatility on Wall Street.
On a side note, Malacca Securities said that Indonesia’s move to lift a ban on palm oil export could bring relief to the global market and lower the CPO price. At the point of writing, the CPO is priced around RM6,000, while the crude oil price remained firm above USD112.
On the local bourse, it said that the FBM KLCI (-0.4%) snapped a 3-day winning streak, mirroring the weakness on Wall Street overnight, dragged by weakness in selected banking and telco heavyweights.
The stockbroking firm said that the lower liners also retreated, while the broader market ended mostly negative with the energy sector (-2.2%) taking the worst hit.
On the global market, it said that Wall Street remained downbeat as the Dow (-0.8%) fell on rising concern over the impact of persistently high inflation and erosion of corporate margins going forward. The European stock markets also extended their decline, while the Asia stock markets ended mostly lower.
