Investors need a defensive strategy with safe-haven assets like gold attracting interest

The FBM KLCI is expected to continue trading sideways as investors remain cautious amid geopolitical uncertainties. Any recovery may be limited due to profit-taking and foreign fund outflows. Market movements are closely tied to US policy developments, while lower liners may follow the weak sentiment of the main bourse.

BNM’s decision to maintain the OPR at 3% was anticipated, as policymakers adopt a wait-and-see approach. Investors are also monitoring key economic data, including the US unemployment rate and EU’s 4Q 2024 GDP estimate.

Safe-haven assets

Sector Outlook: A defensive strategy is recommended, with safe-haven assets like gold attracting interest. Companies benefiting from global supply chain diversification and export-oriented players may gain from the strong US Dollar.

Technical Outlook: The FBM KLCI formed a bearish engulfing candle, signaling a potential pullback. Indicators remain weak, with MACD turning negative and RSI below 50. Resistance is at 1,600, while support is around 1,550. – Apex

Business News

Staff Writer

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