Anticipated buying interest in the technology sector

The benchmark index is expected to consolidate as investors await key US economic data, particularly the non-farm payrolls report, which will influence the Federal Reserve’s rate outlook. Foreign funds are likely to remain net sellers locally, favoring US markets for growth. However, this trend may reverse when the Federal Reserve starts easing rates, potentially boosting emerging markets.

Sector Highlights: Technology

Anticipated buying interest in the technology sector is due to strong earnings and a projected 11.2% YoY growth in the global chip market, reaching USD 697.18 billion in 2025.

• Glove: Sustained interest driven by virus outbreaks in China.

• Energy: Focus remains on tighter oil supply due to increased US sanctions on Russia.

FBMKLCI Technical Outlook:

The index faces a pullback but may defend the 1,600 psychological level. Indicators remain positive with MACD above the Signal Line and RSI above 50. Key resistance is at 1,645, with support around 1,600.

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Staff Writer

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