The market could consolidate further on May 22, but this would also hinge on the performance of Wall Street and external newsflow.
In the US, stocks fell overnight as investors, concerned about the US budget deficit, exited dollar-denominated assets across the board.
Investors’ sentiment was also impacted by Standard & Poor's Ratings Services move to revise its outlook on the UK to negative from stable as it expected the net general government debt burden could approach 100% of GDP.
Asian equities and European markets had retreated on May 21 following rising concerns that the US, due to its ballooning deficit and weakening recession could see it also suffer the same fate as the UK.
On the commodities front, crude palm oil futures for third month delivery tumbled RM103 to RM2,499 on fears the rally could not be sustained while light crude oil futures fell US$1.47 to US$60.57 on recession fears.
The market could see some profit-taking activities ahead of the weekend, especially since a strong run-up since late March.
The weaker CPO and crude oil futures could also see plantation stocks coming under profit taking.
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