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 started the week meekly, preserving its downtrend from the prior week with another 8.8-point loss to end near the 1,580 level as well as bucking the mostly higher regional indices.
For the most part, market conditions remained insipid with the continuing sell-down on AI (artificial intelligence)-related and construction stocks amid their clouded outlook.
The broader market was also subdued with total losers overwhelming gaining stocks by more than a 2-to-1 ratio.
The immediate market outlook remains unsettled amid the continuing wariness over the AI related theme and the tariff war among the key global economies.
At the same time, investors’ attention will now shift to the upcoming slew of corporate results to gauge their prospects in the year ahead.
With fewer cues, the key index is likely to continue drifting with volatility to also remain a feature as market players are likely to remain largely on the defensive side until there is more clarity in the market’s direction.
The immediate support at the 1,580 level also remains precarious due to the lingering market uncertainties and if it gives way, the supports are lowered to the 1,575 and 1,570 levels. The resistances, meanwhile, are at the 1,585-1,590 levels, followed by the 1,595 level.
Malacca Securities Research
The local bourse started the week on a weaker tone, dragged down by the utilities and energy heavyweights.
Meanwhile, Wall Street was closed for the Presidents’ Day public holiday.
Global markets will be watching the peace talks between the US and Russia on ending the war in Ukraine hosted by Saudi Arabia this week and attended by top officials from both countries. Also, Walmart and Alibaba are also set to announce their results this week.
On China and Hong Kong front, we believe the symposium attended by most of China’s business leaders will boost sentiment for China and Hong Kong exchanges.
In the commodities market, Brent crude edged up slightly above US$75/barrel. Gold prices maintained near the US$2,900/oz zone while CPO (crude palm oil) prices are trading above the RM4,500/metric tonne level.
The key index continued to be resisted by EMA60. The technical indicators are also showing signs of slowing down with both the MACD Histogram and RSI starting to trend downward.
Resistance is anticipated around 1,597-1,602 while support is set at 1,562-1,567. – Feb 18, 2025
