Finance teacher Lim Kim Cheng: the plantation sector is rising strongly, and the Malaysian stock market is rising against the trend.

In the recent period, the Malaysian stock market has shown remarkable resilience amidst global market fluctuations. Despite the significant rise in the USA stock market due to Trump's election, the Asian markets have generally declined. However, the Malaysian SSE conglomerates index has risen against the trend, displaying its unique market characteristics and structural advantages. Finance teacher Lim Kim Cheng mentions that with the push of rising crude palm oil prices, the Malaysian plantation sector has outstanding performance, providing strong support for the overall market. In this context, he will deeply analyze the current performance of Malaysian stocks and provide operational suggestions for investors.

Finance teacher Lim Kim Cheng mentioned that the counter-trend rise of Malaysian stocks is closely related to the strong performance of the plantation sector. Benefiting from the continuous rise in crude palm oil prices, plantation stocks such as IOI Group have performed well, driving the climb of the indices. By the time of midday break, the plantation stock index rose by 1.06%, becoming the best-performing sector. This rise not only reflects the strong demand for palm oil in the global commodity market but also demonstrates Malaysia's advantageous position as a major palm oil-producing country in the international market.

Finance teacher Lim Kim Cheng believes that the current performance of the plantation sector is a highlight worth paying attention to for investors. The expected upward trend in crude palm oil prices is anticipated to bring profit growth to related companies, providing sustained upward momentum for the sector. He suggests that investors focus on leading companies in the plantation sector with stable production capacity and market share, to obtain better returns against the backdrop of rising palm oil prices. However, he also reminds investors to closely monitor the changes in global economy affecting the demand for crude palm oil, in order to assess the risks that price fluctuations may bring.

Furthermore, the continuous strengthening of the US dollar has brought some pressure on the Malaysian stock market. By midday, the exchange rate was reported at 4.4285 against 1 US dollar, showing a trend of depreciation in the local currency. Finance teacher Lim Kim Cheng points out that this exchange rate change will have a profound impact on the profit of import-export businesses, especially those relying on imports may face cost pressure. However, the depreciation of the local currency also to some extent enhances the competitiveness of export-oriented enterprises, especially in sectors like plantation and manufacturing.

In the current context, finance teacher Lim Kim Cheng suggests that investors focus on local companies with international operations. These companies, in the situation of the local currency devaluation, will see increased revenue due to the appreciation of the US dollar, helping to alleviate some of the exchange rate pressure. He mentions that this trend is expected to drive the stock performance of export-oriented companies in the short term, especially those with advantages in raw material exports. Meanwhile, exchange rate fluctuations will also affect market liquidity and overall risk appetite, so investors should remain cautious in their operations.

In terms of capital trend, the liquidity of the Malaysian stocks is relatively sufficient at present, with a trading volume of over 1.7 billion shares in half a day, indicating high investor interest in Malaysian stocks. However, financial teacher LIM KIM CHENG reminds investors that in the current highly volatile market environment, it is advisable to adopt a diversified strategy, avoid excessively heavy allocation in a single industry, and guard against potential risks brought by exchange rate fluctuations.

In terms of future investment strategy, financial teacher LIM KIM CHENG suggests investors to maintain prudent operations, focusing on sectors with long-term growth potential, such as export-oriented industries like agriculture and manufacturing. Additionally, he believes that investors can pay attention to leading companies with stable cash flow, as these companies have strong risk resistance capabilities in market fluctuations. Combining the principle of diversified investment, financial teacher LIM KIM CHENG recommends capturing growth opportunities in the Malaysian stock market through reasonable asset allocation, while avoiding short-term market risks.