BELOW are excerpts of viewpoints from two selected research houses on what investors can expect in the day ahead:
Inter-Pacific Research
There were more downsides on Bursa Malaysia as the key index slipped another 3.5 points on Friday to extend its profit taking for a second day.
This time, it was dragged down by the utilities sector with YTL and YTL Power seeing selling after it announced the issuance of non-tradable warrants.
Broader market conditions also stayed insipid with total losers beating gainers by more than 2-to-1 margin amid the continuing profit taking. Traded volumes were higher at just over 3 billion shares traded yesterday.
We see near-term market conditions remaining insipid ahead of the mid-week Chinese New Year break.
As a result, market interest is likely to wane with the key index is likely to stay on its downward trend for the time being amid the continuing foreign selling that is still dominating trades.
Their incessant selling shows few signs of abating as yet, hence likely to dampen recovery prospects over the near term.
Furthermore, there are few noteworthy leads for market players to follow, thereby sending more market players to the sidelines for longer.
On the downside, the supports are now at the 1,566-1,570 levels, followed by 1,555 points. The hurdles, meanwhile, are at 1,580 points and 1,587 points respectively.
Malacca Securities Research
The local bourse closed lower, dragged down by sell-offs in YTL-related counters following the issuance of a 1-for-5 non-tradable warrant which is seen as an inflexible corporate exercise.
In the US, Wall Street closed lower ahead of the FOMC (Federal Open Market Committee) meeting which is expected to provide clarity on the direction of future rate cuts.
For this week, traders will closely monitor key economic data including (i) US economic growth; (ii) unemployment claims; and (iii) the core PCE (Personal Consumption Expenditures Price) Index.
In the commodities market, Brent crude remained below US$80/barrel while gold prices closed higher, surpassing the US$2,750/oz level. CPO prices traded flat around RM4,200/ metric tonne
The index retraced after hitting the 20-day moving average. However, technical indicators are showing recovery signs with the RSI having rebounded off the oversold zone while the MACD Histogram expanded above the positive territory.
Resistance is anticipated around 1,588-1,593 while support is set at 1,553-1,558. – Jan 27, 2025
