Watch the plantation sector as it could see buying interest

Malaysia’s plantation sector could see increased buying interest, as crude palm oil (CPO) futures rose to almost RM4,500 per tonne amid stronger exports and a weaker ringgit (MYR).

The broader market breadth in Malaysia was positive, with 563 gainers versus 541 losers, suggesting a mixed but cautious sentiment among investors.

Yesterday’s market movements were marked by declines in Wall Street, weighed down by rising U.S. Treasury yields, which curbed investor sentiment. The Dow Jones Industrial Average (DJIA) fell by 410 points (-0.96%) to 42,514.95, while the Nasdaq dropped 300 points (-1.60%) to close at 18,276.65. The S&P 500 also declined by 0.92% to 5,797.43. The main driver of these losses was the U.S. 10-year Treasury yield, which climbed to 4.246%, increasing the cost of borrowing and pressuring equity markets.

Asian Markets

In contrast, Asian markets saw mixed performance. The Hang Seng Index (HSI) in Hong Kong rebounded 1.27%, ending above 20,500 at 20,760.15. Investors were encouraged by optimism surrounding corporate earnings and recent policy measures, including the government’s proposal for a USD280 billion stock-stabilization fund. China’s Shanghai Composite Index (SHCOMP) gained 0.52%, closing at 3,302.80, while Japan’s Nikkei 225 eased 0.80%, finishing at 38,104.86. Singapore’s Straits Times Index (STI) rose 0.37%, closing at 3,600.78.

Closer to home, Malaysia’s FBM KLCI closed flat at 1,641.53, down 0.06% or 1.01 points, reflecting the subdued regional performance. Despite earlier gains, trading volume and value remained low with 3.24 billion shares traded at RM2.64 billion. Sectors like telecommunications (+0.4%), consumer (+0.4%), and financial services (+0.3%) saw gains, while health care (-0.9%) and utilities (-0.5%) lagged. The lack of major catalysts contributed to a lackluster session, with the index expected to trend between 1,635-1,645 in the near term.

Watch: Plantation sector

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