BELOW are excerpts of viewpoints from two selected research houses on what investors can expect in the day ahead:
Inter-Pacific Research
Bursa Malaysia ended February on a sombre note last Friday as the selling spree escalated on President Trump’s affirmation on implementing tariffs on imports from its major trading partners.
As a result, selling became widespread with losers outpacing gainers by more than a 3-to-1 ratio amid the steep selling spreading from regional indices.
The lower liners also endured a wretched session as the FBM Small Cap and FBM ACE Market indices saw hefty selling with total volume surging more than 50%.
Near-term market conditions are likely to stay morbid, undermined by uncertainties over global trade that is set for limited growth in 2025 due to escalating trade disputes.
At the same time, economic and market confidence is wavering and may cause market players to gravitate towards safer assets or opt to stay on the sidelines until there is more market certainties.
Therefore, equity market conditions could stay choppy for the time being with the downside bias also remaining a feature as the buying wanes further, likely to buck the positive trend on Wall Street at the end of last week.
Also, there are fewer market leads now that the results reporting season has ended. On the downside, the supports are pegged at 1,564-1,568 points, followed by the 1,557 points. The resistances, on the other hand, are at 1,580 points and 1,585 points respectively.
Malacca Securities Research
The local bourse extended its losses as weaker earnings in consumer-related stocks dampened market sentiment.
Meanwhile, Wall Street managed to close positive as investors brushed off geopolitical tensions following the Trump-Zelenskyy negotiations.
On the economic front, inflation held steady while consumer spending unexpectedly declined in January, making it more challenging for the US Federal Reserve to decide on interest rate directions.
Traders will be watching Jeremy Powell’s speech while also focusing on cryptocurrency after Donald Trump announced the inclusion of five digital assets in a new cryptocurrency US strategic reserve.
In the commodities market, Brent crude declined below the US$73/barrel level while gold price closed below the US$2,900/oz mark. Meanwhile, CPO (crude palm oil) prices saw an uptick toward RM4,554/metric tonne.
The key index is trading below the EMA bands with technical indicators showing mixed signals. The MACD histogram has turned higher but RSI is pointing downward, indicating mixed sentiment at this current juncture.
Resistance is anticipated around 1,589-1,594 while support is set at 1,554-1,559. – March 3, 2025
