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 attempted a rebound yesterday following Friday’s slip but found that selling activity was still prevalent at the start of the week that saw it losing further ground at the close.
Sentiments remain wary on tariffs and escalating trade war concerns that kept most market players on the sidelines.
The lower liners also remained on the downtrend due to the weak sentiments, resulting in total losers beating gainers by a 2-to-1 ratio. Still, the selling volume eased as traded shares fell by 28% after surging last Friday.
Following the overnight rout on Wall Street after President Trump confirmed that the 25% tariffs on Canada and Mexico imports will start today, market sentiments will remain dour for the time being.
This could prolong the FBM KLCI’s weakness trend as the buying support is likely to thin further amid the on-going market headwinds that is also likely to keep the market’s downward bias intact for the time being.
There are also fewer domestic leads for market players to follow with the conclusion of the results reporting season. Hence, the wait-and-see stance likely to remain a feature for now, leaving the market to drift further.
On the downside, the supports are at 1,564-1,568 points, followed by the 1,557 level. The hurdles, meanwhile, are at 1,574 points and 1,580 points respectively.
Malacca Securities Research
The local bourse remained under extended selling pressure, dragged down by industrial products and consumer heavyweights.
Similarly, Wall Street ended lower after President Trump confirmed a 25% tariff on imports from Canada and Mexico with an additional 10% tariff on China.
Economic data-wise, last month’s US ISM PMI (Purchasing Managers Index) fell to 50.3 from 50.9 in January with new orders plunging from 55.1 to 48.6, hence raising concerns over potential growth slowdown.
For this week, traders will continue to monitor (i) S&P Global Services PMI; (ii) the European Central bank’s (ECB) interest rate decision; and (iii) China’s trade balance.
In the commodities market, Brent crude remained below US$73/barrel while gold prices traded flat around the US$2,900/oz level while CPO (crude palm oil) prices fell below RM4,500/metric tonne.
The key index continued to trade below the EMA bands with technical indicators showing signs of slowing down. The MACD positive histogram has turned lower while the RSI is hovering below 50, indicating a weak sentiment.
Resistance is anticipated around 1,586-1,591 while support is set at 1,551-1,556. – March 4, 2025
