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 mounted a rebound to end the week on a mildly positively note.
However, its gains along with the continuing upsides of the FBM Small Cap and FBM ACE indices belie the prevailing cautious undertone and the extended sell-down by foreign funds on Malaysian equities that kept conditions subdued.
The cautiousness is manifested in the negative market breadth for the day as most market players were still on a wait-and-see mode due to the lingering market headwinds.
Market conditions are likely to stay unsettled at the start of the week due to the prevailing wariness over its direction.
As it is, concerns over the US tariffs are likely to keep market players guarded while the availability of few domestic leads could also leave market sentiments on a low ebb for longer.
The most pressing concern is the sustained sell-down of Malaysian equities by foreign funds that has yet to show any signs of abating.
Their selling is likely to keep overall sentiments on a low gear as local institutions are just providing support to keep the key index afloat for the time being.
Under the prevailing environment, the key index is likely to sustain its sideway trend for now with the key index attempting to stay above the psychological 1,500 level.
A breach of the level would see it retrace back to the supports at 1,495 points and the 1,488 level. The resistances, meanwhile, are at 1,512 points and 1,517 points respectively.
Malacca Securities Research
The FBM KLCI posted slight gains as consumer products & services heavyweights offset weaknesses in telco & media heavyweights.
Similarly, Wall Street eked out marginal gains while the US dollar strengthened despite the on-going new US trade policies being introduced by President Trump.
This week, traders will closely monitor the (i) Flash Manufacturing PMI (Purchasing Managers’ Index); (ii) Flash Services PMI; (iii) US economic growth; (iv) Unemployment Claims; and (v) Core PCE (Personal Consumption Expenditures Price) Index.
In the commodities market, both Brent crude and gold traded along US$72/barrel and above US$3,000/oz respectively while CPO (crude palm oil) prices traded within a tight range of around RM4,375/metric tonne.
The key index continued to trade below the EMA bands with technical indicators showing a mixed signal at the current juncture; the MACD histogram expanded positively while the RSI remained below 50.
Resistance is anticipated around 1,520-1,525 while support is set at 1,485-1,490. – March 24, 2025
