Daily Market Report (17 Nov 2020)
- More positive vaccine news helped pushed Wall Street higher as the DJI Average jumped by 470 points to within touching distance of the magical 30,000 mark.
- Meanwhile, the S&P 500 had already touched an all time high. In view of this, we expect regional markets to maintain with their uptrend.
- Domestically, we believe rotational play to continue with funds withdrawing from glove related counters and ploughing back into broader base sectors namely the banks, gaming and plantation.
- The planters especially will also benefit from the higher Crude Palm Oil prices which remain at a rather solid RM3,500/mt. We suspect traders may also start to look at the Oil & Gas counters as the recovery play continues and that the Brent prices seems to be inching towards the US$45/barrel level.
- Therefore, we believe the FBM KLCI to challenge the year high to 1,620 soon.