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 managed to eke-out minor gains to end last week on a positive note, bucking the mostly insipid trend among regional indices that were suppressed by concerns over slower economic growth.
The key index was partly buoyed by firmer-than-expected industrial production output for November with most lower liners also made headway to break their downward spell.
However, the gains on Bursa Malaysia were on low volume and total losers were still ahead of gaining ones.
Despite last Friday’s rebound that allowed the key index to remain above the psychological 1,600 level, we still see market conditions remaining listless due to on-going market cautiousness that is likely to keep the market subdued for longer.
There remain concerns over the state of the global economy and the mixed readings are keeping market players wary of its direction in 2025.
In addition, there are still concerns over President Trump’s potentially restrictive trade policies when he assumes office later this month that could still cause market consternation.
Although conditions are still insipid, the key index may attempt to find support around the 1,600 level with continuing buying support from local institutions but firmer gains will remain elusive.
The hurdles are at 1,605 points and 1,610 points respectively – the latter being the 200-day moving average line. Below the 1,600 level, the other supports are at 1,595 points and around the 1,590-1,592 points respectively.
Malacca Securities Research
The local bourse ended the week on a marginally positive note, lifted by gains in the banking and utilities sectors.
In the US, December job data showed a recovery following the devastating hurricane season in November which exceeded analysts’ forecasts.
However, Wall Street closed on a negative note as markets anticipated that the US Federal Reserve could further slow the easing cycle.
In the commodities market, Brent crude approached the US$80/barrel level amid declining US crude inventories. Gold prices traded above US$2,680/oz while CPO (crude palm oil) prices rebounded but remained below the RM4,400/metric tonne level.
The FBM KLCI rebounded off the 1,600 psychological support after breaking below the moving average lines. The MACD histogram continued to expand negatively while the RSI reading remains below 50, indicating negative momentum at the current juncture.
Resistance is expected around 1,617-1,622 while support is set at 1,582-1,587. – Jan 13, 2025
