BELOW are excerpts of viewpoints from two selected research houses on what investors can expect in the day ahead:
Inter-Pacific Research
There were more downsides on the FBM KLCI as it extended its losses for a third straight session, nullifying some of the window dressing gains late last year with profit taking still dominating trades.
Sentiments turned increasingly cautious amid a still uncertain economic outlook in 2025 that left the key index to drift further.
Meanwhile, the lower liners were mixed with total losers beating gainers for the day but traded volumes stayed above 3 billion shares.
We continue to see near-term market conditions staying subdued due to the lack of domestic leads for market players to follow.
There is also wariness over President Trump’s upcoming tariffs that could slow global trades. Coupled with the persistent selling of Bursa Malaysia stocks by foreign funds, market conditions appear to be still subdued and could stay unsettled for the time being.
In the meantime, local funds have been providing some buying support which should provide some cushioning effects even as their support has been selective.
With downside bias still the prevailing trend, the supports are now set at the 1,620 level, followed by the 1,617 level. On the other hand, the hurdles are at 1,630 points and 1,635 points respectively.
Malacca Securities Research
The local front continued to retreat for the third consecutive day with selling pressure observed across PETRONAS-related counters including Petronas Chemicals Group Bhd and Petronas Dagangan Bhd.
In the US, S&P500 and NASDAQ extended their gains for the second day with Nvidia hitting a record high ahead of CEO Jensen Huang’s speech.
Meanwhile, Foxconn’s strong quarterly revenue continued to fuel demand for tech stocks. Traders will also keep track on the US jobs report this Friday.
In the commodities market, Brent crude is hovering around US$76/barrel while gold traded sideways above US$2,600/oz as Bitcoin once again surpassed the US$100,000 mark. However, CPO (crude palm oil) continues to trade below the RM4,400/metric tonne mark.
The FBM KLCI formed a higher-low and higher-high formation and closed above all the moving average (MA) lines. The MACD Histogram is trading on the positive territory while the RSI reading is above 50, indicating positive momentum at the current juncture.
Resistance is anticipated around 1,640-1,645 while support is set at 1,605-1,610. – Jan 7, 2025
