Plantations and bigger capitalised stocks would continue to be in focus (ext: Edge)

Plantations and bigger capitalised stocks would continue to be in focus on May 21 after investors reentered the market on expectations of an extended rally.

The firm crude palm oil prices, which hovered above the RM2,600 per tonne mark and light crude oil price above US$60 would continue to attract investors, analysts said.

Investors’ confidence was clearly demonstrated despite Moody’s move to review nine banks in Malaysia for possible downgrade.

However, more positive newsflow were needed for the KLCI to stay above the 1,040 level. The KLCI is now trading at 15.58 times proce to earnings.

Funds are believed to have picked up the liquid plantation stocks on May 20 on expectations that crude palm oil futures may hit RM3,000 a tonne as demand outstrips supply.