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KUALA LUMPUR (May 17): Fund managers expect Malaysia s gross domestic product (GDP) to grow at about 6% or lower this year on the back of the resurgence of Covid-19 cases, as compared with the central bank’s forecast of 6.5% to 7%. However, the local economy and markets are expected to benefit from global trade recovery and high commodity prices. AmFunds Management Bhd (AmInvest) chief investment officer Wong Yew Joe said the recent announcement of the movement control order (MCO) is weighing down the growth of the local economy. “The general expectation is that for every month of lockdown, it lowers about 0.3% of the GDP. We expect this year’s GDP to be dialled down to 5% to 5.5%.” ....
WHY are plantation stocks not on the radar of investors even though crude palm oil (CPO) prices have gained as much as 18% from RM3,070 per tonne on Nov 3 last year to RM3,632 per tonne last Wednesday? Analysts say there are several factors dampening prices, but warn that environmental, social and governance (ESG) issues that now plague the sector could be the most damaging if not swiftly addressed. This is because international investors are increasingly placing great value on such practices. As Covid-19 vaccines are now available, investors have shifted their attention from glove makers and manufacturers of personal protective equipment to technology stocks, owing mainly to strong demand for semiconductors. The lack of interest in plantation stocks is palpable as reflected in the Bursa Malaysia plantation index. ....