Export-oriented sectors remain attractive, supported by a stronger USD

Investor sentiment is subdued as global attention shifts to the upcoming US CPI data and the Federal Reserve’s Beige Book, which will shape policy outlooks. The FBM KLCI may attempt a rebound toward 1,600, but foreign funds are likely to remain net sellers, with capital favoring US assets or Treasury securities. Despite this, local investors may find selective bargain-hunting opportunities following the market pullback.

Malaysia’s wholesale and retail trade sector grew 4.7% year-on-year to RM149.3 billion in November 2024, marking the second-highest monthly sales of the year. Investors are also awaiting US PPI data for further market cues.

Sector Focus: Export-oriented sectors

Export-oriented sectors remain attractive, supported by a stronger USD and increased global competitiveness. The energy sector, including PCHEM, ARMADA, and YINSON, is expected to benefit from rising crude oil prices, which have surpassed US$80 per barrel due to declining Russian exports and tighter US sanctions.

Technical Outlook for FBM KLCI

The index slipped below the 1,600 psychological level, reflecting negative technical indicators such as the MACD Line crossing below the Signal Line and the RSI staying below 50. Immediate resistance is at 1,625, while support is expected around 1,570.

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Staff Writer

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