BELOW are excerpts of viewpoints from two selected research houses on what investors can expect in the day ahead:
Inter-Pacific Research
Malaysian stocks mounted a strong rebound yesterday to regain the losses from Tuesday’s sell-down with much of the recovery emanating from bargain hunting on banking stocks on firmer results.
Expectedly, the financial services index was the main outperformer with lower liners also mounted a mild rebound, hence enabling market breadth to turn positive.
However, market interest was relatively thin as traded volumes slipped below 3 billion shares amid a still broadly cautious market undertone.
While yesterday’s quick rebound was encouraging, we think the near-term market conditions are still wary, particularly with President Trump’s tariff threats still looms large and will continue to weight on sentiments.
However, the market will be attempting to find some more near-term stability after a choppy period with the on-going results reporting season where announced results reported thus far has been relatively on target to keep market players still drawn to the market.
In addition, key global indices are also displaying stability that could help to calm market conditions for now.
Consequently, the key index may tip higher over the near term with the immediate hurdle set at 1,591 points, followed by the 1,595-1,600 levels. On the downside, there are supports at the 1,577-1,580 levels with the ensuing support pegged at 1,565 points.
Malacca Securities Research
The local bourse closed higher as gains in banking heavyweights lifted sentiment locally, driven by strong banking earnings supported by higher net interest margin and steady loan growth.
However, Wall Street remained within a tight range ahead of Nvidia’s earnings report. Although Nvidia’s results came in above expectations, its post-market trading has been volatile, fluctuating between the positive and negative territory.
Thus, we believe positive sentiment surrounding the AI (artificial intelligence) theme could be limited.
In the commodities market, Brent crude retreated further towards US$74/barrel on on-going fears of weakening demand. Meanwhile, gold traded flat at US$2,916/oz while CPO (crude palm oil) closed lower towards RM4,566/metric tonne.
The key index charged towards the 20-50 EMA with technical indicators showing mixed signals. The MACD histogram remains flat while the RSI has hooked above 50, indicating that sentiment is mixed at the current juncture.
Resistance is anticipated around 1,603-1,608 while support is set at 1,568-1,573. – Feb 27, 2025
