The local stock market has entered a consolidation phase as optimism from temporary tariff cuts between the US and China fades. Despite concerns over US debt and fiscal sustainability, bargain hunting is expected due to global market recoveries.
US trade deals
Attention is shifting to the upcoming local corporate earnings season, with potential US trade deals seen as crucial for sustaining the market’s recovery. The Technology sector may see renewed interest after a three-day selloff, following Nasdaq’s overnight recovery.
FBMKLCI Technical Outlook
The FBM KLCI has declined for three sessions, moving away from the SMA200. Technical indicators remain positive, with MACD above the signal line and RSI above 50, suggesting potential consolidation. Resistance is at 1,600, with support around 1,530.
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