BELOW are excerpts of viewpoints from two selected research houses on what investors can expect in the day ahead:
Inter-Pacific Research
Stocks on Bursa Malaysia continued to stumble at the end of last week amid heightened uncertainties over the state of the global economy as the trade war rachets up between the US and its main trading partners.
Market sentiments stayed jittery regionally and caused the FBM KLCI to slip to its lowest level since the start of the year.
Lower liners also lost further pace, leaving market breadth decidedly on the negative side with traded volumes also slipping further due to the challenging market conditions.
We continue to see near-term market conditions staying frayed due to the uncertainties over the outlook of the global economy amid heightened trade disputes that is likely to keep market sentiments dour for the time being.
There are also few signs of a reprieve in the trade war and the cautious undertone will prevail for longer.
This could also see more market players staying on the sidelines with the market’s choppiness still dominating trades.
As a result, the downside bias remains on Bursa Malaysia with the key index is poised for further downsides even as Wall Street mounted a recovery last Friday.
With the 1,550-level breached, the supports are lowered to 1,542 points and 1,536 points respectively which corresponds to its lowest level in August last year. The immediate resistance is at 1,550-1,555 points, followed by the 1,565 level.
Malacca Securities Research
The local bourse ended the week in the red as telco and media heavyweights dragged sentiment.
While job growth showed signs of fatigue, Wall Street traded positively after Jerome Powell’s speech on a robust economic outlook despite concerns that President Trump’s new trade policies could prove inflationary.
For this week, traders will keep an eye on: (i) the US JOLTS Job Openings; (ii) US Inflation Data; (iii) US Producer Price Index; (iv) US Unemployment Claims; (v) Preliminary UOM (University of Michigan) Consumer Sentiment; and (vi) Preliminary UOM Inflation Expectations.
On the commodities market, Brent crude eased its downward pressure toward US$69/barrel amid the Ukraine-Russia peace talks and new US trade policies. Gold traded within a tight range at US$2,911/oz while CPO (crude palm oil) prices moved toward RM4,625/metric tonne to break above the SMA-20.
The key index continued to trade below the EMA bands with technical indicators signalling weaknesses. The MACD histogram expanded negatively while RSI is hovering below 50, indicating weak momentum.
Resistance is anticipated around 1,562-1,567 while support is set at 1,527-1,532. – March 10, 2025
