BELOW are excerpts of viewpoints from two selected research houses on what investors can expect in the day ahead:
Inter-Pacific Research
Stocks on Bursa Malaysia mounted a rebound yesterday after President Trump hinted that he could walk back on some of the tariffs imposed on his US’ neighbours, hence restoring some confidence in the market.
The key index mirrored the performance of regional indices to regain some traction on bargain hunting activities with the rebound extended to the broader market shares as the day’s total gainers outpacing losers nearly on a 2-to-1 ratio.
The market’s reversal and the US president’s willingness to tone down the tariffs has helped to ease the headwinds somewhat as it allowed key global equity indices to mount a recovery overnight.
We see the positivity extending to the FBM KLCI with bargain hunting to continue and enabling the key index to regain more of its recent losses.
Notwithstanding the firmer near-term market conditions, we still see the market’s volatility persisting as the headwinds have not dissipated and could still affect the market’s outlook.
As such, the gyrations on the FBM KLCI are likely to remain a feature for longer but in the meantime, the immediate hurdle is at the 1,566-1,570 levels, followed by the 1,575 level. On the downside, the supports are at 1,560 and 1,555 points respectively.
Malacca Securities Research
The local bourse reversed its losses, buoyed by gains in banking and utilities heavyweights.
In the US, all three indices rebounded after President Trump granted a one-month delay to US automakers that comply with the US-Mexico-Canada Agreement (USMCA), thus easing trade war fears.
Following a slower pace increase in US private payrolls, investors will closely monitor (i) initial jobless claims, and (ii) the European Central Bank (ECB) interest rate decision later today.
In the commodities market, Brent crude retreated further to US$69/barrel level while gold prices remained flat around the US$2,900/oz range but CPO (crude palm oil) traded above the RM4,400/metric tonne mark.
Despite yesterday’s rebound, the key index is still trading below the EMA bands with technical indicators showing signs of weaknesses. The MACD histogram has expanded negatively while the RSI is hovering below 50, indicating weak momentum.
Resistance is anticipated around 1,579-1,584 while support is set at 1,544-1,549. – March 6, 2025
