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 ended Monday (Feb 10) virtually unchanged after it managed to recoup most of its intraday losses towards the end of the session to stay close to the 1,590 level.
Overall market conditions, however, were more subdued following President Trump’s imposition of 25% tariffs on steel and aluminium imports which sent most lower liners lower in what is seen as profit taking.
As a result, market breadth turned negative with traded volumes also little changed.
With the key index preserving most of its recent gains, the near-term market conditions are also staying relatively firm, underpinned by bargain hunting on some of the beaten down sector leaders and easing foreign selling pressure.
However, near-term market conditions are still likely to be wary due to the continuing uncertainties over the state of the global economy as the threat of a trade war still looms large.
As a result, the market could still be unsettled even as there appears to be some measure of stability among key global indices and the FBM KLCI may still be attempting to consolidate its recent gains around the 1,580-1,590 levels for time being.
On the upside, the hurdles are at 1,593 points, followed by the psychological 1,600 level. There is an immediate support at the 1,585 level, followed by the 1,580 level.
Malacca Securities Research
The FBM KLCI started the week on a weaker tone (-0.06%) as gains in telco and utilities were offset by declines in plantation stocks.
Wall Street traded within a tight range following US Federal Reserve chairman Jerome Powell’s outlook on a slower easing cycle.
Traders will monitor key inflation data, including (i) core CPI (Consumer Price Index); (ii) CPI; (iii) core PPI (Producer Price Index); and (iv) PPI along with retail sales for clues on whether the Fed may adjust its stance in an environment of elevated inflation.
In the commodity market, Brent Crude ticked above US$76/barrel. Gold remains elevated at US$2,897/oz near the all-time high zone while CPO (crude palm oil) prices charged towards RM4,600/metric tonne.
The key index surpassed its EMA20 with technical indicators showing positive signs, including a positive MACD histogram just started to form while the RSI is trending off its oversold zone.
Resistance is anticipated around 1,604-1,609, while support is set at 1,569-1,574. – Feb 12, 2025
