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 managed to recoup all of its intraday losses to end the day with minute gains yesterday, aided by buying support on selected index linked stocks to break its streak of losses and to find support at the 1,580 level.
However, the buying was not broad-based as most lower liners still headed south to extend their losses, leaving market breadth to remain decidedly negative.
Meanwhile, glovemakers were among the big losers after Hartalega Holdings Bhd announced below-expectation results.
There appears to be some mild support to keep the key index above the 1,580 level after it managed to end its downtrend yesterday.
There could be further near-term recovery as selective buying is likely to persist to enable the FBM KLCI to remain on a mild rebound as market players await for more corporate results to be released to gauge their prospects for the year.
Under the prevailing environment, the upsides could still be relatively modest due to the continuing cautiousness over the market’s direction and concerns over a trade war that could keep sentiments subdued for longer.
On the upside, the key index could target the 1,590 level, before the 1,595 hurdle comes into play. The 1,580 level remains the immediate support, followed by the 1,575 level.
Malacca Securities Research
The local bourse rebounded from its losses, driven by gains in banking and telecommunications heavyweights.
Meanwhile, Wall Street edged marginally higher with the S&P 500 reaching an all-time high, as Intel surged on reports that Broadcom and TSMC are exploring a split with Broadcom eyeing its chip design unit and TSMC its factories which could address Intel’s manufacturing challenges.
For this week, investors will focus on the (i) FOMC (Federal Open Market Committee) meeting minutes; (ii) initial jobless claims; and (iii) the S&P Global Services PMI (Purchasing Managers’ Index).
In the commodities market, Brent crude is maintaining above US$75/barrel while gold prices are trading near its all-time high and CPO (crude palm oil) prices are hovering above RM4,500/metric tonne.
The key index continued to be resisted by EMA60 with technical indicators still not showing signs of recovery. Both the MACD Histogram and RSI are still pointing downward.
Resistance is anticipated around 1,599-1,604 while support is set at 1,564-1,569. – Feb 19, 2025
