Top Stories
Sector Update | Plantation
MPOB’s Jun 26 data showed palm oil inventories rising for a third consecutive month to a June record, though the buildup was smaller than we expected as exports and domestic use cleared more supply than assumed. With the stock/usage ratio easing, absorption is keeping pace with seasonal supply growth into the 2H production peak. Maintain OVERWEIGHT on the sector, underpinned by structural demand growth from the expansion of regional biofuel mandates.
What’s Inside
Strategy| Implications Of The Johor State Election Result
As expected, BN has widened its already-comfortable majority in last Saturday’s Johor state election (winning 48 of 56 seats, versus 40 seats in 2022), at the cost of other competing coalitions. Naturally, we expect market sentiment to remain cautious and generally risk-off, ahead of the 1 August Negeri Sembilan state election, which is seen as pivotal in deciding the possibility of a snap general election (GE16).
Market Spotlight
- The FBMKLCI increased 13.85pt (+0.33%) to close at 1,691.49pt last Friday
- US stocks were higher after the close on Friday, as gains in the basic materials, telecommunicaitons and technology sectors led shares higher.
Technical Analysis
FBMKLCI, FCPO & FKLI Index Outlook
Traders’ Corner
CAB Cakaran Corporation | CABC MK
Trading Buy Range: RM0.53-0.535
Elsoft Research | ELSR MK
Trading Buy Range: RM0.23-0.235
EP Manufacturing | EPMB MK
Trading Buy Range: RM0.44-0.45
Top Stories
Sector Update | Plantation
MPOB’s Jun 26 data showed palm oil inventories rising for a third consecutive month to a June record, though the buildup was smaller than we expected as exports and domestic use cleared more supply than assumed. With the stock/usage ratio easing, absorption is keeping pace with seasonal supply growth into the 2H production peak. Maintain OVERWEIGHT on the sector, underpinned by structural demand growth from the expansion of regional biofuel mandates.
What’s Inside
Strategy| Implications Of The Johor State Election Result
As expected, BN has widened its already-comfortable majority in last Saturday’s Johor state election (winning 48 of 56 seats, versus 40 seats in 2022), at the cost of other competing coalitions. Naturally, we expect market sentiment to remain cautious and generally risk-off, ahead of the 1 August Negeri Sembilan state election, which is seen as pivotal in deciding the possibility of a snap general election (GE16).
Market Spotlight
- The FBMKLCI increased 13.85pt (+0.33%) to close at 1,691.49pt last Friday
- US stocks were higher after the close on Friday, as gains in the basic materials, telecommunicaitons and technology sectors led shares higher.
Technical Analysis
FBMKLCI, FCPO & FKLI Index Outlook
Traders’ Corner
CAB Cakaran Corporation | CABC MK
Trading Buy Range: RM0.53-0.535
Elsoft Research | ELSR MK
Trading Buy Range: RM0.23-0.235
EP Manufacturing | EPMB MK
Trading Buy Range: RM0.44-0.45
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