Interest Rate Upcycle Makes Banking Stocks Attractive

Malacca Securities maintains its positive stance on the banking sector in the interest rate upcycle environment.

Meanwhile, it said that the technology sector might face further sell-down amid a negative tone in Nasdaq. “Trading in commodities-related sectors such as oil & gas are likely to remain subdued on the back of declining commodity prices,” the stockbroking house said

The stockbroking house said that Indonesia’s temporary freeze on sending migrant workers to Malaysia may prolong the labour shortages across all sectors, particularly in the plantation and manufacturing sectors. Commodities-wise, the crude oil price remained below USD100 per barrel mark, while the CPO price hovered around RM3,850.

On the local bourse, Malacca Securities said that the FBM KLCI (-1.0%) erased all its previous two sessions of gains on a weaker performance in selected oil & gas and plantation heavyweights following the weakness in commodity prices.

The lower liners also retreated, while the consumer products & services sector (+0.1%) outperformed the broader market.

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