MyEG, Datasonic rebound as risk-on trade returns #Risk_OnJanuary 12, 2019
By ALIFAH ZAINUDDIN / Pic By TMR
Shares of e-services providers, MyEG Services Bhd and Datasonic Group Bhd, rallied as investor appetite for risk resurfaced while share buybacks helped the beaten down stocks rise.
“This rebound has to do with improvement or willingness of markets everywhere, not just Malaysia, to take more risk.
Rakuten Trade Sdn Bhd VP of research Vincent Lau said the improved sentiment is driving retailers to bargain hunt stock with compelling valuations.
“Most of the smaller stocks are making a comeback.
People are back in the market and these are some of the stocks that retailers are interested in,” he said.
“The government’s budget will be affected by oil prices.
In the last few days, we’ve seen oil prices rebounding and I think the US West Texas Intermediate (WTI) crude oil will be above US$50 (RM205.56) per barrel shortly.
Hopefully, that will translate into more government spending than previously estimated,” Pong said.
WTI crude oil futures stood at about US$50.75 per barrel at 7pm yesterday.