MARKET DEVELOPMENT
Plantation Stocks Latest Pocket Of Strength For Investors
Plantation Stocks Latest Pocket Of Strength For Investors
09/12/2013 (Bernama) - Plantation stocks can be the latest pocket of strength for investors dabbling in Bursa Malaysia Securities given the rising momentum of crude palm oil prices.
Affin Investment Bank Bhd Vice-President and Head of Retail Research Dr Nazri Khan said investors should accumulate high beta plantation stocks such as IOI Corp, Kuala Lumpur Kepong, IJM Plantation, Batu Kawan, United Plantation, Genting Plantation, TH Plantation and TDM Bhd.
Going forward, he said the local equity market was expected to maintain a bullish bias buoyed by the plantation sector's strength.
"Bursa Malaysia should get significant catalysts from a strong commodity bounce with crude palm oil, light crude oil, gold and copper making short-covering rallies, while the plantation sector would lead the rest of the broad market, gaining 1.4 per cent week-on-week," he told Bernama.
On a Friday-to-Friday basis, the Plantation Index surged 118.55 points to 8,998.60 points.
On the technical front, Nazri said the FTSE Bursa Malaysia KLCI, which was completing a bullish head and shoulders pattern, was now preparing a support platform to jump higher after making a bullish breakaway gap at 1,825-1,818 points and after hitting an all-time-intraday high of 1,840.12 points early last week.
He said the near-term trend for the index favoured the bull camp, given a notable increase in trading volume.
"Resistance is likely between the 1,830 points and 1,840 points levels while stronger shelf of support for any December dips stand between the 1,820 and 1,800 levels.
"Seasonal trends usually favour a strong finish to December with profit taking normally happening just before the Chinese New Year in late January.
"With such big price gains on the books for the last quarter of 2013, however, it appears that money managers are quietly accumulating the local stocks as a window dressing for January," he added.
Meanwhile, the FTSE Bursa Malaysia KLCI ended at a fresh all-time high of 1,826.95 points on Friday after breaching the previous all-time highs of 1,824.29 points and 1,824.86 recorded on Dec 3 and Dec 5.
Affin Investment Bank Bhd Vice-President and Head of Retail Research Dr Nazri Khan said investors should accumulate high beta plantation stocks such as IOI Corp, Kuala Lumpur Kepong, IJM Plantation, Batu Kawan, United Plantation, Genting Plantation, TH Plantation and TDM Bhd.
Going forward, he said the local equity market was expected to maintain a bullish bias buoyed by the plantation sector's strength.
"Bursa Malaysia should get significant catalysts from a strong commodity bounce with crude palm oil, light crude oil, gold and copper making short-covering rallies, while the plantation sector would lead the rest of the broad market, gaining 1.4 per cent week-on-week," he told Bernama.
On a Friday-to-Friday basis, the Plantation Index surged 118.55 points to 8,998.60 points.
On the technical front, Nazri said the FTSE Bursa Malaysia KLCI, which was completing a bullish head and shoulders pattern, was now preparing a support platform to jump higher after making a bullish breakaway gap at 1,825-1,818 points and after hitting an all-time-intraday high of 1,840.12 points early last week.
He said the near-term trend for the index favoured the bull camp, given a notable increase in trading volume.
"Resistance is likely between the 1,830 points and 1,840 points levels while stronger shelf of support for any December dips stand between the 1,820 and 1,800 levels.
"Seasonal trends usually favour a strong finish to December with profit taking normally happening just before the Chinese New Year in late January.
"With such big price gains on the books for the last quarter of 2013, however, it appears that money managers are quietly accumulating the local stocks as a window dressing for January," he added.
Meanwhile, the FTSE Bursa Malaysia KLCI ended at a fresh all-time high of 1,826.95 points on Friday after breaching the previous all-time highs of 1,824.29 points and 1,824.86 recorded on Dec 3 and Dec 5.