BELOW are excerpts of viewpoints from two selected research houses on what investors can expect in the day ahead:
Inter-Pacific Research
Bursa Malaysia stocks rebounded yesterday, ending its downward streak as bargain hunting emerged following the oversold market conditions from the recent steep sell-off.
The rebound was also firm as it allowed the key index to regain the psychological 1,500 level at the close.
Most of the buying, however, were from domestic institutions as foreign funds were still net sellers. Lower liners also mounted a strong rebound, hence enabling total gainers to beat losers by more than a 2-to-1 ratio.
Although key global indices retreated further overnight, we think bargain hunting activities could be prolonged to allow the FBM KLCI to extend its recovery and to adjust from its deeply oversold condition.
However, bouts of quick profit taking actions may also emerge ahead of the weekend that could temper some of the recovery prospects.
At the same time, the key index could be attempting to fortify its position above the psychological 1,500 level following the recent steep falls with its efforts backed by still attractive market valuations that are below their historical forward averages.
On the upside, the resistances are at the 1,514-1,516 levels with the ensuing hurdle set at 1,520 points. The supports, meanwhile, are at the 1,500-1,504 levels, followed by the 1,489 level.
Malacca Securities Research
The local bourse traded positively after the US posted slower-than-anticipated inflation data despite President Trump’s new trade policies.
However, we believe traders have started pricing in Canada’s retaliation measure with 25% tariffs on US$21 bil worth of US goods along with potential tit-for-tat actions by other trading partners, thus we expect further downside risk for Wall Street.
The recent flattish and marginal decline in Producer Price Index (Core PPI: -0.1%, PPI: 0.0%) data may also influence the US Federal Reserve’s interest rate outlook.
In the commodities market, the on-going Ukraine-Russia peace talks continued to weigh on Brent crude which hovers around US$70/barrel. Gold prices surged to an all-time high near US$2,990/oz while CPO (crude palm oil) is traded around RM4,500/metric tonne.
The key index continued to trade below the EMA bands with technical indicators showing signs of weakness. The MACD histogram expanded negatively while the RSI is oversold, indicating weak momentum.
Resistance is anticipated around 1,525-1,530 while support is set at 1,490-1,495. – March 14, 2025
