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 mounted a firm recovery last Friday to re-capture the 1,590 at the close, buoyed by strong gains in PETRONAS related companies on bargain hunting to end its consecutive days of losses.
The recovery was also in tandem with the gains among regional indices that permeated to the broader market shares albeit their rebound was less than stellar.
This allowed market breadth to turn positive with construction stocks emetging the biggest winners.
Last Friday’s recovery was welcomed to break the FBM KLCI’s downward spell but the tide has not turned yet as there remains uncertainties over President Trump’s tariff threat that could still leave sentiments frayed.
In the meantime, market conditions could turn weaker again after Wall Street’s slump at the end of last week that could spill over to the Malaysian equity market at the start of the week, mainly on concerns that the global economy could slow amid the lingering economic headwinds.
This could undo some of last Friday’s gains on the FBM KLCI’s with quick profit taking to dominate trades once again.
On the downside, the key index could find support at the 1,585 level, followed by the 1,580 level while the immediate hurdle is at 1,593 points with the ensuing resistance set at 1,603 points.
Malacca Securities Research
The local bourse closed on a positive note, buoyed by buying support in consumer products & services.
However, Wall Street ended negatively as the Services PMI (Purchasing Managers’ Index) data came in worse-than-anticipated, compounded by Walmart’s conservative revenue guidance which sparked fears of weakened consumer demand.
For this week, traders will monitor (i) US Consumer Confidence; (ii) preliminary quarter-on-quarter (qoq) GDP (gross domestic product); (iii) unemployment claims; and (iv) monthly core PCE (Personal Consumption Expenditures) Price Index.
In the commodities market, Brent crude lost 3.1% as the US pressured on Iraq to resume Kurdish oil exports.
Meanwhile, both gold and CPO (crude palm oil) traded within a tight range at US$2,936/oz and RM4,664/metric tonne respectively.
The key index continues to hover between the EMA20-60 band but technical indicators remained weak. The MACD Histogram has turned negative while the RSI continues to point downward, indicating weaker sentiment at this juncture.
Resistance is anticipated around 1,606-1,612 while support is set at 1,571-1,576. – Feb 24, 2025
