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 extended its losing streak for a fourth session yesterday on the back of the continuing selling by foreign funds while nullifying the intraday gains as well.
Cumulatively, the key index shed 5.3% since the start of the year to emerge as the biggest loser among regional indices.
The broader market was also mostly in the red with construction stocks emerrging the biggest losers once again as selling pressure escalated. Traded volumes rose to 3.6 billion shares for the day amid the continuing strong selling flavour.
The key index’s near-term outlook remains frail due to the continuing sell-down by foreign funds that is leaving the key index to drift further.
Their incessant selling shows few signs of abating and this could still send the FBM KLCI lower over the near-term.
With Malaysia’s strong reliance on China for trade and the latter likely to face further tariffs from incoming US President Trump, export reliant stocks on Bursa Malaysia’s could face increased headwinds.
Amid the continuing trade uncertainties, the downside bias remains and the key index may whittle down further to end the week on another sombre note.
With successive support levels broken, the immediate support is now at 1,550 points, followed by the 1,544 level. The resistances, meanwhile, are at 1,560 and 1,565 points respectively.
Malacca Securities Research
The local bourse closed lower, dragged down by a continuous sell-off in construction and utilities heavyweights.
In the US, higher-than-expected unemployment claims coupled with softer-than-anticipated retail and core retail sales spooked the market and contributed to the selling pressure on Wall Street.
Traders will be monitoring the key Chinese economic data including GDP (gross domestic product), industrial production and retail sales that will be released later today.
In the commodities market, Brent crude is hovering above US$81/barrel while gold prices traded positively above US$2,700/oz. CPO (crude palm oil) prices continue to decline near the RM4,100/metric tonne level despite the new Indonesia export policies.
The FBM KLCI closed on another losing streak after breaking below the moving average lines. The MACD Histogram continued to expand negatively while the RSI approached the oversold level, indicating negative momentum at the current juncture.
Resistance is anticipated around 1,570-1,575 while support is set at 1,535-1,540. – Jan 17, 2025
