BELOW are excerpts of viewpoints from two selected research houses on what investors can expect in the day ahead:
Inter-Pacific Research
After attempting to extend its recovery early yesterday, the key index lost ground again as the day progressed, hampered by renewed selling pressure on banking entities like CIMB Group Holdings Bhd and Hong Leong Bank Bhd.
The pullback also bucked the recovery among regional indices as they reacted positively to the US’ delayed auto tariffs on Canada and Mexico.
Broader market shares, however, maintained their recovery to help market breadth stay positive.
We continue to see near-term market conditions remaining uncertain, affected by the on-going tariff war between the US and some of its key trading partners that could leave the FBM KLCI directionless for longer with the downside bias also looking to remain ahead of the weekend.
The overnight losses on Wall Street could again leave sentiments on a cautious tone that may permeate to stocks on Bursa Malaysia.
Consequently, the downside may still linger as the selling pressure is staying intact for the time being.
The immediate support is now at 1,555 points with the ensuing supports set at the psychological 1,550 level and 1,547 points respectively. The resistances are at the 1,565-1,568 levels, followed by the 1,575 level.
Malacca Securities Research
The local bourse snapped its one-day gain as losses in Banking heavyweights dragged the key index lower.
Similarly, Wall Street turned negative again after volatile swings driven by tariffs on Mexico and Canada.
President Trump announced a one-month delay on 25% duties for Mexican goods that comply with the USMCA (US-Mexico-Canada Agreement) while Canada expected a similar exemption, prompting investors to stay sidelined until trade policies become clearer.
Investors will also look at the (i) non-farm payrolls; and (ii) unemployment rate later today.
In the commodities market, Brent crude continued to trade within the US$69/barrel range while gold prices also remained flat around the US$2,900/oz level but CPO (crude palm oil) prices edged up nearer towards the RM4,450/metric tonne mark.
The key index continued to trade below the EMA bands with technical indicators signalling weakness. The MACD histogram expanded negatively while RSI is hovering below 50, indicating weak momentum.
Resistance is anticipated around 1,573-1,578 while support is set at 1,538-1,543. – March 7, 2025
