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 closed with relatively minor losses yesterday as it managed to recoup most of its intraday losses despite the wretched sentiments from President Trump’s announcement of tariffs on Canada, Mexico and China over the weekend.
The support from local market players helped to cushion the key index from steeper falls even as market breadth remained negative with the return of mild bargain hunting to shore up the market.
There could be some near-term reprieve for the Malaysian equity market following President Trump’s delay in implementing tariffs on Canadian and Mexican products into the US.
This could allow the key index to find some solace around the psychological 1,550 level despite the broad market sentiments remaining mostly uncertain.
Nevertheless, the still cautious undertone could still limit the near-term recovery prospects with only mild bargain hunting likely to emerge.
At the same time, the unabating foreign selling could also prevent a firmer market recovery. Below 1,550 level, the supports are at 1,545 and 1,542 points respectively while on the flipside, the resistances are set at the 1,557-1,562 levels, followed by the 1,565-1,570 levels.
Malacca Securities Research
The FBM KLCI edged lower as heavyweights like Petronas Chemicals group Bhd and YTL Power International Bhd dragged the key index amid renewed selling pressure.
In the US, while all three key indices showed narrowed losses following President Trump’s statement on pausing the tariffs on Mexico and Canada, they still ended the day in the red.
Meanwhile, the US ISM Manufacturing PMI (Purchasing Managers’ Index) came in better-than-expected with traders continuing to monitor the (i) ISM Non-Manufacturing PMI; (ii) initial jobless claims; and (iii) China’s Caixin services PMI this week.
In the commodities market, Brent Crude is still trading around US$76/barrel while gold prices remain elevated near its all-time high of US$2,817/oz level. Elsewhere, CPO (crude palm oil) prices experienced a breakout above the RM4,300/metric tonne mark.
The FBM KLCI index retreated once again with MACD histogram trading at its negative territory while the RSI is trending downward, suggesting sluggish performance at the current juncture.
Resistance is anticipated around 1,568-1,573 while support is set at 1,533-1,538. – Feb 4, 2025
