BELOW are excerpts of viewpoints from two selected research houses on what investors can expect in the day ahead:
Inter-Pacific Research
Malaysian equities recovered yesterday following President Trump’s move to delay the implementation of tariffs on Canada and Mexico, thus allowing for what is seen as a mild relief rebound albeit China reciprocated a tariff move on American goods.
Nevertheless, the calmer market conditions allowed the key index to climb back above the 1,560 level with most lower liners also sustaining their recovery.
However, market interest remains thin as it only rose some 7.4% and remained well below 3 billion shares.
With the tariff reprieve, near-term market conditions should continue to improve, hence enabling the key index to extend its recovery into a second day amid calmer market conditions.
However, there remains tentativeness over the FBM KLCI’s performance due to the lack of leads and wariness over the sustained global headwinds that may keep the recovery in check.
At the same time, there are also few noteworthy domestic leads to entice more market players back into the market.
Therefore, market interest is likely to remain thin for now and further upsides may be limited with the hurdles set at the 1,570-1,573 levels, followed by 1,578 points. The supports, meanwhile, are at the 1,557-1560 levels while the ensuing support is at the psychological level of 1,550 points.
Malacca Securities Research
The local bourse reversed its losses and closed mostly higher, supported by banking heavyweights.
Despite China’s retaliatory measures, Wall Street closed higher as traders shrugged off the trade tensions between US-China by focusing on several announced upbeat earnings, including that of Palantir and Spotify.
After a slowdown in the US JOLTS openings, traders will continue to monitor the (i) ISM Non-Manufacturing PMI (Purchasing Managers’ Index); (ii) S&P Global Services PMI; and (iii) China’s Caixin Services PMI today.
In the commodities market, Brent Crude is still trading around US$76/barrel while gold prices charted its all-time high at US$2,845/oz. Elsewhere, CPO (crude palm oil) prices maintained above the RM4,300/metric tonne mark.
The key index rebounded once again with the MACD histogram still trading at its negative territory while the RSI started trending upward, suggesting mixed signals at the current juncture.
Resistance is anticipated around 1,579-1,584 while support is set at 1,544-1,549. – Feb 5, 2025