Investors expected to remain cautious amid uncertainties

The market may see profit-taking after Wall Street‘s sharp decline, with tariff concerns likely to weigh on investors, particularly in the Technology sector, which rebounded strongly but may face volatility.

Uncertainties

Investors are expected to remain cautious amid uncertainties. Positively, foreign funds have shifted to net buying after 38 days, targeting undervalued stocks. The upcoming US PPI data will be closely watched for insights into the US economy, while local data on retail sales, unemployment, and industrial production will also draw attention.

Sector Focus: A pullback is possible after Wall Street’s weakness, with advice to trim exposure to high-performing sectors like Technology. Defensive sectors such as REITs, Utilities, and Healthcare are recommended amid global uncertainties.

FBMKLCI Technical Outlook

The FBM KLCI gapped up, recovering recent losses, but technical indicators remain bearish, with the MACD below the signal line and RSI exiting oversold territory. A mild pullback is possible, with resistance at 1,470 and support at 1,400.

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