BELOW are excerpts of viewpoints from two selected research houses on what investors can expect in the day ahead:
Inter-Pacific Research
Malaysia equities stumbled yesterday in tune with the regional equity markets as sentiments continues to wane on worries over President Trump’s hardline views on tariffs and amid escalating trade tensions.
This saw the key index slipping below the 1,570 level at the close. Selling activity also escalated among the broader market shares with the FBM Small Cap and FBM ACE indices shedding 1.7% and 2.0% respectively as losing stocks thumped gainers by 905 to 217.
There is no change to our near-term market view which we still think is unsettled amid the ongoing tariff concerns and heightened trade disputes.
As a result, sentiments will remain insipid for longer and market players will continue to retreat to the sidelines until a recovery in in sight.
The on-going results reporting season has also seen few outperformers albeit largely within expectations while the gyrating global equity markets is also forcing market players to adopt a risk-off stance.
As such, the choppy market environment is likely to prevail with the downside also remaining for now.
With the FBM KLCI falling below the 1,570 level, there could be further weakness ahead with the next supports now pegged at 1,565 and 1,557 points respectively. The hurdles, meanwhile, are at 1,575 and 1,580 points respectively.
Malacca Securities Research
The local bourse closed lower as losses in banking and utilities heavyweights dampened the sentiment locally.
Wall Street ended mostly lower after weaker consumer confidence following a weakening Services PMI (Purchasing Managers’ Index) and Walmart’s conservative outlook.
We believe the decline in confidence stems from elevated inflation, worsened by President Trump’s tariffs threats on trading partners which suggests a slower easing cycle ahead.
In the commodities market, Brent crude lost nearly 2.5% on fears of slower energy demand and an elevated stockpile outlook. Meanwhile, gold retreated below US$2,920/oz while CPO (crude palm oil) traded around RM4,570/metric tonne.
The key index fell below 20-EMA with technical indicators remaining weak. The MACD Histogram remains flattish while the RSI trended below 50, indicating weaker sentiment at this juncture.
Resistance is anticipated around 1,583-1588 while support is set at 1,548-1,553. – Feb 26, 2025
