BELOW are excerpts of viewpoints from two selected research houses on what investors can expect in the day ahead:
Inter-Pacific Research
Mild profit taking dominated trades on the FBM KLCI yesterday that shed some gains from recent rebound but still able to stay above the 1,580 level.
The key index was range-bound for much of the day and managed to recoup most of its intraday losses at the close.
Conditions in the broader market was more positive as many broader market shares sustained their recovery that enabled market breadth to stay on the positive side.
However, traded volume was little changed and remained a shade below 3.0 billion shares.
We think the key index would attempt to find more near-term solace as it looks to end the week on a steadier note albeit President Trump’s confirmation of import tariffs on its neighbouring countries and China could keep market players wary for longer.
The results reporting season would also be coming to a close with market players poised to monitor other market developments for trading ideas.
Even so, we think that further gains may become more difficult to attain as many market players will still be on a wait-and-see stance with the key index could instead look to build up a base around the 1,580-1,600 levels for the time being.
There is support at the 1,580-1,583 levels with the ensuing support pegged at the 1,575 level. The resistances, meanwhile, are at 1,590 and 1,595 points.
Malacca Securities Research
The local bourse closed lower as sentiment was dampened by weaknesses in PETRONAS-related stocks coupled with uncertainties surrounding its domestic CapEx (capital expenditure) outlook.
Wall Street ended in red after selling pressure emerged despite Nvidia posting better-than-expected results.
We believe the change of mind by President Trump on tariffs threat towards Canada and Mexico which is set to take effect on March 4 alongside a rise in unemployment claims to 242,000 – the highest level in three months – will contribute to further weakness on the stock market.
On the commodities market, Brent crude rebounded towards US$73/barrel while gold closed below the US$2,880/oz mark and CPO (crude palm oil) prices hover around RM4,530/metric tonne.
The key index hovers around the EMA bands with technical indicators showing positive signals. The MACD histogram has started trending positively while the RSI has hooked above 50, indicating positive momentum at the current juncture.
Resistance is anticipated around 1,601-1,606 while support is set at 1,566-1,571. – Feb 28, 2025
