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Local
Higher oil prices will be a boon
Tue, 11-Jun-2024 07:42 am
by Research Team • Apex Research

  • Malaysia Market Review. The FBM KLCI (-0.22%) took a step back with half of the key index components closed in red yesterday. The lower liners, however, marched higher amid the positive market breadth. Meanwhile, all Transportation & Logistics sector (+1.78%) outperformed the mostly positive sector peers.
  • Global Markets Review. Wall Street advanced after recovering from their intraday lows as investors look ahead towards the key inflation rate data as well as US Federal Reserve interest rate decision later this week. Elsewhere, European markets extended their decline after French President Emmanuel Marcon calls for a legislative vote following the crushing defeat in European Parliament elections, while Asia stock markets closed mostly negative.
  • Market Outlook. Expectedly, the FBM KLCI’s run took a pause as investors digested recent gains. Investors brushed off the solid industrial production data released yesterday as trading interest shifted towards the smaller cap stocks. Looking ahead, we expect some mild improvement on the local bourse, taking cue from the positive developments on Wall Street overnight as well as the firmer crude oil prices which could aid the rebound in oil & gas heavyweights. Investors will keeping a close tab onto Malaysia’s retail sales data later today. Sector wise, we favour the energy sector following the spike in crude oil price on expectations of higher demand in the summer. We also reckon that the logistics-related players will continue to ride onto the higher ocean freight rates.
Sentiment: Negative
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Market Mover
Settlement Rates
Currency Buy Rates (RM) Sell Rates (RM)
USD 4.170987 4.204276
EUR 4.872100 4.877133
CNY 0.589575 0.590185
HKD 0.537072 0.540837
SGD 3.222926 3.245616