BELOW are excerpts of viewpoints from two selected research houses on what investors can expect in the day ahead:
Inter-Pacific Research
Profit taking dominated trades on the first day of trading in 2025.
This follows the spell of window dressing activities late last year that sent the key index comfortably above the psychological 1,600 level as well as posting double-digit gains for the year.
The broader market was mixed to lower on bouts of profit taking yesterday, leaving market breadth on the negative side. Traded volumes, meanwhile, were some 10% higher than a day earlier.
With the onset of the profit taking activities yesterday, there could be further near-term weakness as the selling may sustain for a second day as conditions still appear toppish from the recent window dressing activities.
Buying interest also looks to wane further with the selling pressure likely to dominate trades ahead of President Trump’s inauguration as market players will await his trade policies.
Back home, there is little change to Bursa Malaysia’s fundamentals that could still keep sentiments subdued for the time being.
Therefore, the continuing profit taking could leave the key index to drift towards its supports at the 1,625-1,627 levels, followed by the 1,620 points. The resistances, on the other hand, are at 1,638 and 1,645 points respectively.
Malacca Securities Research
The local front began the year on a softer note, snapping a six-day winning streak as profit-taking emerged in selected industrial products & services and utilities heavyweights.
Although unemployment claims came in stronger than expected, US stocks extended their losses, partly weighed down by lacklustre results from Tesla Inc.
Traders will also keep an eye on key economic data such as the ISM Manufacturing PMI (Purchasing Managers’ Index) which is set to be released later today.
In the commodities market, Brent crude gained momentum, hovering above US$75/barrel, supported by shrinking US crude stockpiles and growing manufacturing activity in China.
Elsewhere, gold price edged higher, surpassing US$2,600/oz while CPO (crude palm oil) prices retreated below the RM4,400/metric tonne mark.
The FBM KLCI snapped its six-day winning streak on profit taking. However, the MACD Histogram is positive with the RSI having crossed above 50, indicating positive momentum at the current juncture.
Resistance is anticipated around 1,647-1,652 while support is set at 1,612-1,617. – Jan 3, 2025
