BELOW are excerpts of viewpoints from two selected research houses on what investors can expect in the day ahead:
Inter-Pacific Research
Steep profit taking emerged yesterday, undoing much of the gains from a day earlier and leaving the key index below the psychological 1,600 level at the close.
Foreign institutional selling also resumed to dominate trades once again on potentially higher-for-longer interest rates amid a pick-up in US inflation.
The lower liners also retreated further with total losers dominating gainer for the day. Market participation also slipped by nearly 19% for the day.
Although the key index pulled back yesterday, the near-term market conditions are likely to remain relatively firm as there are still bouts of mild bargain hunting after January’s sell-down that has left valuations of some of the industry bellwether at attractive levels.
At the same time, market players are expecting the country’s 4Q 2024 GDP (gross domestic product) which will be announced today to stay firm to keep the market buoyant for now.
Nevertheless, the recovery prospects could still be modest as there may still be some hesitation due to the ongoing global headwinds, including a looming trade war.
On the upside, the 1,600 level is the immediate resistance, followed by the 1,605 level. The supports, meanwhile, are at 1,590 points and 1,583 points respectively.
Malacca Securities Research
The local bourse closed on a negative note as profit-taking in banking heavyweights dampened sentiment.
While the month-on-month PPI (Producer Price Index) points to inflationary pressures as it came in hotter-than-anticipated at 0.4%, Wall Street edged higher, buoyed by gains in Nasdaq heavyweights, notably Nvidia after Hewlett Packard Enterprise shipped its first NVIDIA AI computing Blackwell system.
In the commodities market, Brent Crude traded within a tight range around US$74-US$75/barrel amid prospects of Russian-Ukraine peace talks. Gold prices surged toward USD2,928/oz while CPO (crude palm oil) prices took a breather after the recent rebound above RM4,600/metric tonne.
The key index surpassed its EMA60 with technical indicators showing positive signs with the MACD Histogram expanded positively on the positive territory while the RSI is trending above the 50 level.
Resistance is anticipated around 1,607-1,612 while support is set at 1,572-1,577. – Feb 14, 2025
