BELOW are excerpts of viewpoints from two selected research houses on what investors can expect in the day ahead:
Inter-Pacific Research
The FBM KLCI ended last week on firm note, extending its recovery for a fourth session as well as climbing back above the 1,590 at the close.
There continues to be bargain hunting and rotational buying into beaten down stocks with foreign institutional funds also turning net buyers.
Broader market shares were also mostly higher amid the sustained mild buying interest that allowed market breadth to stay positive.
Near-term market conditions are still mostly positive despite the largely low market following as mild buying interest is still prevalent that could keep the FBM KLCI elevated for longer.
However, cautiousness may start to creep[1]in again after President Trump ratchet up his tariff threats with potentially a 25% tariff on steel and aluminium entering the US.
This may see market conditions becoming more subdued as market players assess the new market headwind, thus opting to lock-in some of the recent profit that may slow the key index’s ascend.
Consequently, a pullback could also materialise that may undo some of the recent gains. On the downside, there is an immediate support at 1,588 points, followed by the 1,580 level. The hurdles, meanwhile, are at the 1,593-1,595 levels with the ensuing resistance pegged at the psychological 1,600 level.
Malacca Securities Research
The FBM KLCI ended the week with a five-day winning streak, fuelled by bargain hunting in banking and utilities heavyweights.
Meanwhile, sentiment in the US weakened due to slowing job growth despite a declining unemployment rate and stronger wage growth.
Additionally, inflationary pressure remained elevated compared to previous month, signalling a slower easing cycle ahead. Also, President Trump is reportedly considering fresh tariffs of 25% on all steel and aluminium imports later today.
For this week, traders will closely monitor key upcoming data, including (i) core CPI (Consumer Price Index); (ii) CPI; (iii) core PPI (Producer Price Index); (iv) PPI; and (v) retail sales.
In the commodities market, Brent Crude closed below US$75/barrel while gold prices remained elevated around US$2,860/oz. Meanwhile, CPO (crude palm oil) prices surged above RM 4,500/metric tonne.
The key index surpassed its EMA20 with technical indicators showing positive signs, including a positive MACD histogram just started to form while the RSI is trending off its oversold zone.
Resistance is anticipated around 1,605-1,610 while support is set at 1,570-1,575. – Feb 10, 2025
