Market update: Although the US stock markets ended the week on a negative tone, we expect stocks on the local front could be due for a technical rebound after the 3-day pullback last week. We believe the KL-SG HSR and water-related stocks may remain in focus given the news on RM4bn Rasau water treatment plant calling for tender next year is still fresh. Meanwhile, we expect trading interest to rekindle in plantation sector as CPO surged and closed firmly above RM3,400 last Friday.
Sector focus: Market participants are likely to take part within the construction, building materials as well as property sector amid the potential emergence of HSR news flow by year-end, while water-related stocks should be under the limelight as well. Besides, plantation could be lifted amid firmer CPO price last week.
Stocks to watch:
Construction: #AZRB
Building materials: #ENGTEX, #ANNJOO, #SSTEEL
Property: #E&O, #ECOWLD, #KPPROP
Plantation: #BPLANT, #RSAWIT, #JTIASA
Consumer: BJTOTO, BAT
Technology: #D&O, #FPI, #PRESBHD
Others: #JAG, #ANCOM
Source: M+ Online
Sector focus: Market participants are likely to take part within the construction, building materials as well as property sector amid the potential emergence of HSR news flow by year-end, while water-related stocks should be under the limelight as well. Besides, plantation could be lifted amid firmer CPO price last week.
Stocks to watch:
Construction: #AZRB
Building materials: #ENGTEX, #ANNJOO, #SSTEEL
Property: #E&O, #ECOWLD, #KPPROP
Plantation: #BPLANT, #RSAWIT, #JTIASA
Consumer: BJTOTO, BAT
Technology: #D&O, #FPI, #PRESBHD
Others: #JAG, #ANCOM
Source: M+ Online
Market update: The FBM KLCI mirrored the regional weakness to dip below the 1,600 level, but the glove counters finished in the positive region following the release of Kossan’s remarkable results, bucking the market downtrend. However, the sector may see some pullback due to concerns over glove’s ASP on the back of the ongoing Covid-19 vaccination programme. Meanwhile, the CPO prices continue to hover near the RM4,000 level, but positive impact was not reflected on the plantation counters. Tracking the overnight gains on Wall Street, the local bourse may see some mild rebound.
Sector focus: We expect the local bourse may take cue from the rise in Nasdaq overnight and put the technology sector on radar. Besides, we believe the plantation counters may see some improvement following the firmer CPO prices.
Stocks to watch:
Building material: LEONFB, #ULICORP, #MSC, #MASTEEL, #LSTEEL, #LIONIND, #AYS
Consumer: #XIANLNG
Chemical: #HEXTAR
Construction: #GFM, #KIMLUN, #JAKS
Plantation: #JTIASA, #WTK, #RSAWIT, #KRETAM, #MATANG, #MHC
Transport & Logistics: TASCO, #SEALINK
Technology: #SMETRIC CUSCAPI
Other: #DOLPHIN, #REDTONE, #MGRC, #EITA, #HARTA
Source: @mplusOTG
Sector focus: We expect the local bourse may take cue from the rise in Nasdaq overnight and put the technology sector on radar. Besides, we believe the plantation counters may see some improvement following the firmer CPO prices.
Stocks to watch:
Building material: LEONFB, #ULICORP, #MSC, #MASTEEL, #LSTEEL, #LIONIND, #AYS
Consumer: #XIANLNG
Chemical: #HEXTAR
Construction: #GFM, #KIMLUN, #JAKS
Plantation: #JTIASA, #WTK, #RSAWIT, #KRETAM, #MATANG, #MHC
Transport & Logistics: TASCO, #SEALINK
Technology: #SMETRIC CUSCAPI
Other: #DOLPHIN, #REDTONE, #MGRC, #EITA, #HARTA
Source: @mplusOTG
Bursa Halftime (5.7.2021) – Stocks/Sectors to Watch Out
1. Palm Oil Sector
Stocks to monitor - #SOP, #Bplant, #Rsawit
The futures price of Crude Palm oil (CPO) continues to trade in response to India’s relaxation of import taxations for Crude Palm oil. The country, who is one the world’s largest CPO importers, also recently announced that imports of RBD palm olein (Refined, Bleached and Deodorised Palm Oil) restrictions will be lifted until the end of December 2021.
This will greatly benefit Malaysian palm oil refiners since India disallowed refined palm oil imports without a special permit in January last year. FCPO prices are trading around RM3834, up 1.21% as of writing.
2. O&G Sector
Stocks to monitor - #Hibiscs, #Dayang, #Uzma
The OPEC+ meeting on Friday was inconclusive and they are expected to meet again today to settle a stalemate on oil production quotas. The current situation is largely due to conflict between UAE and the rest of the members’ take on how much should production be increased per day.
Majority of the members agrees to increase production by 400,000 barrels per day in response to rising demand as global economies start to open up due to high vaccination rates.
The party is also suggesting an extension to production cuts to 2022 to stabilize Crude Oil prices while also meeting demands. If the party does not come to an agreement, the breakdown could result in oil price crashes like last year. Brent Crude Oil is trading above $76 per barrel as of writing.
Source: @chartnexus
1. Palm Oil Sector
Stocks to monitor - #SOP, #Bplant, #Rsawit
The futures price of Crude Palm oil (CPO) continues to trade in response to India’s relaxation of import taxations for Crude Palm oil. The country, who is one the world’s largest CPO importers, also recently announced that imports of RBD palm olein (Refined, Bleached and Deodorised Palm Oil) restrictions will be lifted until the end of December 2021.
This will greatly benefit Malaysian palm oil refiners since India disallowed refined palm oil imports without a special permit in January last year. FCPO prices are trading around RM3834, up 1.21% as of writing.
2. O&G Sector
Stocks to monitor - #Hibiscs, #Dayang, #Uzma
The OPEC+ meeting on Friday was inconclusive and they are expected to meet again today to settle a stalemate on oil production quotas. The current situation is largely due to conflict between UAE and the rest of the members’ take on how much should production be increased per day.
Majority of the members agrees to increase production by 400,000 barrels per day in response to rising demand as global economies start to open up due to high vaccination rates.
The party is also suggesting an extension to production cuts to 2022 to stabilize Crude Oil prices while also meeting demands. If the party does not come to an agreement, the breakdown could result in oil price crashes like last year. Brent Crude Oil is trading above $76 per barrel as of writing.
Source: @chartnexus
Market update: Despite a broad rebound in regional markets, the FBM KLCI retreated to close below the 1,600 psychological level as investors focus on the geopolitical developments between Russia-Ukraine after the earnings season. With the Wall Street remained in the risk-off mode overnight, we expect volatility to persist and profit taking activities may continue on the local front with the unsettled Russia-Ukraine incident. Nevertheless, the elevated commodity prices, coupled with the net buying of foreign funds should lend support to the local bourse. At the time of writing, Brent oil is trading above USD107, while CPO surged above RM7,000.
Sector focus: We believe the energy, metal-related and consumer stocks are still among the top sectors to watch under this jittery environment. Meanwhile, should the tension between Russia-Ukraine continue to rise, investors may see trading interest in the plantation counters amid the shortfall in sunflower oil.
Stocks to watch:
Plantation: #APB, CAMRES, #GLBHD, #RSAWIT, #TSH
Banking: ABMB, AFFIN
Building material: #CHINHIN, #CSCSTEL, #JADEM
Automotive: #EPMB, #MBMR
Healthcare-related: #HARTA, KOTRA
Property: #MENANG, #SPSETIA
Others: #BPPLAS, #HIBISCS, #HONGSENG, SCICOM, #SIGN
Source: M+ Online
Sector focus: We believe the energy, metal-related and consumer stocks are still among the top sectors to watch under this jittery environment. Meanwhile, should the tension between Russia-Ukraine continue to rise, investors may see trading interest in the plantation counters amid the shortfall in sunflower oil.
Stocks to watch:
Plantation: #APB, CAMRES, #GLBHD, #RSAWIT, #TSH
Banking: ABMB, AFFIN
Building material: #CHINHIN, #CSCSTEL, #JADEM
Automotive: #EPMB, #MBMR
Healthcare-related: #HARTA, KOTRA
Property: #MENANG, #SPSETIA
Others: #BPPLAS, #HIBISCS, #HONGSENG, SCICOM, #SIGN
Source: M+ Online
#rsawit | Shares of Rimbunan Sawit closed half sen or 3.2% lower at 15 sen on Tuesday (April 25), giving it a market capitalisation of RM306.26 million.
2) #RSAWIT (KLSE: 5113)
Technical BUY with +38.5% potential return
* Last: RM0.26 TP: RM0.30, RM0.36 SL: RM0.215
* Timeframe: 2 weeks to 2 months
* Shariah: YES
Join UOB Kay Hian Malaysia's Official Telegram Channel
https: @UOBKayHianMalaysia
Technical BUY with +38.5% potential return
* Last: RM0.26 TP: RM0.30, RM0.36 SL: RM0.215
* Timeframe: 2 weeks to 2 months
* Shariah: YES
Join UOB Kay Hian Malaysia's Official Telegram Channel
https: @UOBKayHianMalaysia
