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Global markets turned cautious as a  sharp tech selloff and escalating US-Iran tensions  weighed on sentiment, while Malaysia’s palm oil sector faced rising pressure from  weak exports and intensifying regional competition . Wall Street Slides on Tech Weakness and Geopolitics US equities declined sharply, led by heavy selling in technology stocks: S&P 500 -1.62% ,  Nasdaq -1.98% ,  Dow -1.87% Super Micro Computer  plunged  28%  after a dilutive share placement Broad declines across chipmakers including  NVIDIA ,  Advanced Micro Devices  and  Taiwan Semiconductor At the same time, oil prices surged  3% to US$90+ , as renewed military strikes heightened fears of  inflation and prolonged high interest rates . KLCI Holds Ground but Breadth Signals Weakness Despite global volatility, Malaysia’s  KLCI edged up 0.21% , supported by selective buying. However, underlying sentiment remained fragile: Losers outpaced gai...

Malaysia’s market closed slightly higher as  select blue-chip buying offset global risk-off sentiment , while analysts highlighted  palm oil output as a meaningful contributor to near-term GDP growth  and longer-term economic momentum. Market Snapshot US Market Recap S&P 500 Index : 6,926.6 ( -0.5% ) Dow Jones Industrial Average : 49,149.63 ( -0.1% ) Nasdaq Composite Index : 23,471.75 ( -1.0% ) US equities retreated from recent record highs as  technology and banking stocks weakened , while geopolitical tensions involving Iran and renewed political rhetoric added to investor caution. Bursa Malaysia Performance FTSE Bursa Malaysia KLCI Index :  1,710.91 (+0.16%) Top Gainer:   Petronas Dagangan  (+3.96%) Top Loser:   Gamuda  (-2.04%) USD/MYR:  4.0493 The FBM KLCI edged higher on  late-session buying , maintaining levels above the key 1,710 mark. Key Themes Driving Malaysia’s Outlook Palm Oil Supports GDP Growth CIMB Investment Ban...

Malaysia Market Ends Lower Amid Regional Caution Palm Oil Exports Drop 16.27% in February Stocks to Watch: CAPITALA, TDM, OASIS Wall Street in Turmoil: Recession Fears Shake Global Markets US markets plunged as investors reacted to escalating trade tensions under President Trump’s administration. The S&P 500 dropped 2.7%, while the Nasdaq suffered its worst single-day loss since 2022, falling 4%. President Trump acknowledged the economic uncertainties in a Fox News interview, stating, "There is a period of transition because what we’re doing is very big." Meanwhile, the Atlanta Fed now projects a 2.4% GDP contraction for Q1, signaling a potential recession risk. Tech Stocks Take a Hit The sell-off was particularly severe for the tech sector, with the so-called "Magnificent Seven" stocks leading the decline. Tesla fell 15.4%, the biggest drop among the group. Amazon, Apple, Meta, Microsoft, NVIDIA, and Alphabet also saw notable losses. With investor sentiment at ...

Palm oil prices are expected to stay above RM5,000 through 1Q2025 due to tight supplies from Indonesia and Malaysia and Indonesia’s upcoming B40 biodiesel mandate , according to BMI (Fitch Group). However, additional price increases may be limited by seasonal factors, including reduced demand in the northern hemisphere and the end of Diwali-driven buying in India. La Niña conditions anticipated in 4Q2024 could influence production, with mild rainfall potentially boosting yields without severe flooding. The B40 biodiesel mandate rollout in Indonesia is also seen as a factor that could impact supply-demand dynamics. BMI notes that palm oil demand in food processing remains strong, though household-level substitution to other edible oils could occur due to palm oil's price premium over soybean oil. BMI projects the global palm oil surplus to narrow from 1.8 million tonnes in 2023/2024 to 1.1 million tonnes in 2024/2025, contrasting with USDA’s higher surplus forecasts. Prod...

AmInvestment Bank forecasts that palm oil prices will rally in 2025 , driven by a tight supply of edible oils and growing biodiesel demand. The research house has upgraded the plantation sector to “overweight” , with expectations that crude palm oil (CPO) prices will average 6.3% higher next year, around RM4,250 per tonne . Factors contributing to this positive outlook include: Supply shortages of competing oils like rapeseed and sunflower. Biodiesel demand growth and export restrictions in Indonesia. A potential dip in Malaysia’s output following a 2024 bumper harvest and labor shortages due to a foreign worker recruitment freeze . Currently, CPO prices have risen 33% year-to-date to nearly RM4,000 per tonne , supporting an 9% gain in the Bursa Malaysia Plantation Index. This contrasts with Malaysia’s official projection for CPO prices, expected to be between RM3,500 and RM4,000 in 2025 amid improved weather and labor availability. Further, EU deforestation regulations set for...

Indonesia , the world's largest palm oil producer, saw its palm oil product exports rise by 15% year-on-year in August to 2.38 million metric tonnes , according to data from the Indonesian Palm Oil Association (Gapki) . This growth contributed to lowering the country’s end-August stockpile to 2.45 million tonnes , the lowest since March 2019. Despite the increase in exports, palm oil production has been affected by dry weather last year, leading to a projected 5% decline in output for 2024. Gapki estimates the total production of crude palm oil this year to be 51 million tonnes . Domestic palm oil consumption is set to rise further as Indonesia plans to implement a 40% biodiesel mix (B40) in diesel starting in January, an increase from the current 35% mix . This initiative is expected to boost domestic palm oil usage by an additional two million tonnes annually. Agriculture Minister Andi Amran Sulaiman reaffirmed the government's commitment to the B40 policy, which is...

Indonesia, the world's largest palm oil exporter, plans to reduce export levy rates on palm oil to enhance its competitiveness against other vegetable oils like soybean and sunflower oil. The move aims to attract major buyers such as India and China and improve small farmers' income, a government official said on Wednesday. Key Highlights: Restoring Price Competitiveness : Palm oil, traditionally the cheapest among vegetable oils, has lost its price advantage in recent months due to ample supply, making it less attractive to buyers. By lowering the export levy, Indonesia hopes to restore palm oil’s competitive pricing and improve the welfare of small farmers, who often face lower prices due to higher export taxes. Current and Proposed Changes to Levy Structure : Under the existing rules, Indonesia imposes a levy ranging from $55 to $240 per metric ton for crude palm oil exports, depending on global prices. The levy is charged on top of a separate export tax. The new plan involv...