Energy sector could see further gains

The local stock market is showing signs of stabilization as selling pressure decreases, though volatility may persist due to upcoming reciprocal tariffs set for April 2, 2025. The key index is projected to trade between 1,485 and 1,530.

Lower Liners

Lower liners, which recently rebounded, might enter a consolidation phase as trading slows ahead of the Hari Raya festive break. Investors are focused on upcoming flash PMI data from major economies like Japan, the Eurozone, the UK, and the US.

Energy sector

In terms of sectors, the energy sector could see further gains due to rising oil prices following US sanctions on Iran and OPEC+’s planned production cuts until June 2026, signaling tighter supply. The technology sector is expected to follow the positive trend seen in the Nasdaq last Friday.

Technically, the FBM KLCI formed an inverted hammer candle, holding the 1,500 level with slight gains. However, indicators remain bearish, with the MACD below the signal line and the RSI under 50. Resistance is at 1,530, with support around 1,485.

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