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 was on a freefall yesterday, tumbling nearly 40 prints to end at the 1,480 level which is also its lowest in a year.
Market conditions were dour as Malaysian equities emerged as the day’s biggest loser among regional indices with the tariff concerns continuing to dampen sentiments.
Broader market conditions were also insipid as many joined the key index constituents to head lower with construction stocks losing the most. Expectedly, total losers still outpaced total gainers for the day.
As it is, the FBM KLCI is already severely oversold and bargain hunting opportunities have arisen, particularly among some of the sector leaders in the banking and construction sectors that were sold down recent.
We also see the 1,480-level providing some near-term support with a rebound already due for the key index to adjust from its bout of oversold.
As such, the key index could start angling for a recovery over the near term with bargain hunting activities emerging due to equity valuations becoming increasingly attractive as the FBM KLCI’s forward PERs at 12x-13x for the next two years are below its historical forward averages of 14x-16x.
On the upside, the key index could target the 1,488 level before making a pass at the 1,504 level. The supports, on the other hand, are at 1,477 points and ay 1,461 points respectively.
Malacca Securities Research
The sell-off in the local bourse persisted as on-going retaliation and global economic uncertainties driven by President Trump’s trade policies weighed on market sentiment.
Meanwhile, Canada’s response – by imposing 25% tariffs on US$21 bil worth of US goods – contrasted with Wall Street’s rebound as slower-than-anticipated CPI (Consumer Price Index) inflation data (0.2% month-on-month and 2.8% year-on-year) calmed investors.
This may affect the US Federal Reserve’s interest rate outlook environment. Furthermore, traders will keep track of (i) PPI (Producer Price Index) data; (ii) unemployment claims; and (iii) the Preliminary University of Michigan (UOM) Consumer Sentiment.
In the commodities market, Brent crude and gold edged higher towards US$70/barrel and US$2,935/oz respectively while CPO (crude palm oil) traded in a tight range within RM4,487/metric tonne.
The key index continued to trade below the EMA bands with technical indicators showing signs of weakness. The MACD histogram expanded negatively while the RSI is still hovering below 50, indicating weak momentum.
Resistance is anticipated around 1,499-1,504 while support is set at 1,464-1,469. – March 13, 2025
