Foreign funds are expected to remain net sellers

Market sentiment is expected to remain subdued as investors await the US Non-Farm Payroll report and assess risks from policies like mass deportations and tariffs, which could exacerbate inflation and trade tensions.

The FBM KLCI is likely to continue its downward momentum toward the psychological 1,600 level, with increased volatility impacting lower-tier stocks.

Foreign funds

Foreign funds are expected to remain net sellers due to a lack of recovery catalysts. However, the market pullback offers bargain opportunities, supported by attractive valuations.

Sector Focus

Export-oriented sectors, including gloves, furniture, and technology, are favored due to the weaker MYR, boosting competitiveness. The oil & gas sector is also positioned for gains, supported by rising oil prices from higher demand during the cold winter in Western countries.

Technical Outlook

The FBM KLCI dipped below the SMA50 and SMA200 levels, with mixed indicators—MACD above the Signal Line but RSI below 50. Immediate resistance is at 1,645, with support around 1,600.

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