BELOW are excerpts of viewpoints from two selected research houses on what investors can expect in the day ahead:
Inter-Pacific Research
There was no let-up in selling activity as the FBM KLCI’s downtrend deepened amid the on-going trade dispute between the US and its major trading partners that is affecting sentiments.
The key index closed at 1,520 level yesterday which is its lowest level in a year with foreign funds still reducing their holdings in Malaysian equities.
Broader market conditions were also similarly dour, causing losers to overwhelm gainers by more than a 3-to-1 ratio with the selling also picking up pace to 3.7 billion shares.
There is no change to the Malaysian equity market’s immediate outlook with the insipid conditions to prevail for longer.
As it is, the uncertainties over the global economic outlook will continue to leave sentiments cautious with the push-and-pull factors to also preserve the FBM KLCI’s on-going malaise for longer given the country’s strong dependence on external trade.
Crucially, the flight to safety by foreign funds has not abated, hence could prompt more consternation to the FBM KLCI near-term direction.
Consequently, there will be more downside pressure over the near term as the key index heads towards the critical 1,500 level which could then see support emerging.
In the interim, there are supports at the 1,516 and 1,510 levels while the resistances are pegged at 1,528 and 1,537 points respectively.
Malacca Securities Research
The local bourse extended its losses as global economic uncertainties dampened sentiment in line with regional markets.
Following the recent announcement of an additional 25% tariff on steel and aluminium imports from Canada – albeit reversed – we believe Wall Street may have limited upside as retaliatory actions by trading partners will negatively impact economic activity.
All eyes are on the US inflation data tonight whereby we believe that a -5% deviation from the 2.9% forecast would weigh on sentiment.
In the commodities market, Brent crude eased toward US$69/barrel amid the Ukraine-Russia peace talks. Meanwhile, gold traded higher toward US$2,917/oz while CPO (crude palm oil) prices remained in a tight range at RM4,468/metric tonne.
The key index continued to trade below the EMA bands with technical indicators showing signs of weakness. The MACD histogram expanded negatively while RSI is still hovering below 50, indicating weak momentum.
Resistance is anticipated around 1,535-1,540 while support is set at 1,500-1,505. – March 12. 2025
