BELOW are excerpts of viewpoints from two selected research houses on what investors can expect in the day ahead:
Inter-Pacific Research
There was further recovery on Bursa Malaysia due to calmer market conditions that allowed for further bargain hunting activities.
As a result, the FBM KLCI managed to rebound above the 1,570 level with overall volumes also making a comeback albeit still below 3 billion shares as more market players return from the Chinese New Year break.
Lower liners also made firmer strides yesterday due to the increased bargain hunting.
Near-term market conditions are likely to remain positive for now boosted by reduced threat of an escalation in the trade war between the US and some of its key trading partners.
This should help to keep Bursa Malaysia’s recovery trend intact for the time being while allowing for the on-going bargain hunting activities to persist following the key index’s steep falls at the start of the year.
Furthermore, there should be increased market interest amid the calmer market conditions as well as the reduced net foreign institutional selling that could see key index stocks find more stability.
Nevertheless, there could also be increased quick profit taking ahead that may limit further upsides with the targets now set at the 1,580-1,582 levels, followed by 1,586 points. The supports, on the other hand, are at the 1,568-1,570 levels with the ensuing support set at 1,565 points.
Malacca Securities Research
The local bourse nudged higher as data centre-related counters regained traction for the session.
In the US, Wall Street continued its upward strength for the third day, buoyed by gains in Nvidia and Super Micro.
The falling Treasury yields driven by softer ISM Services PMI (Purchasing Managers’ Index) have further boosted the interest rate-sensitive tech sector. Following that, traders will continue to monitor the initial jobless claims later today.
In the commodities market, Brent crude dipped towards US$74.60/barrel following an increase in crude oil inventories while gold prices continue to chart new all-time high at US$2,867/oz. Elsewhere, CPO (crude palm oil) prices held above RM4,300/metric tonne despite a minor pullback.
The key index rebounded and hit the EMA20 with technical indicators showing recovery signs whereby the MACD histogram has approached zero while RSI is trending off its oversold zone.
Resistance is anticipated around 1,589-1,594 while support is set at 1,554-1,559. – Feb 6, 2025
