Market volatility may persist due to concerns over potential U.S. tariffs

The FBM KLCI’s upward momentum is weakening after marginally surpassing the 1,570 resistance level. Volatility may persist due to concerns over potential U.S. tariffs under Trump’s administration, leading to cautious sentiment among foreign investors and continued net selling in emerging markets. Lower liner stocks might consolidate as investors adopt a defensive stance ahead of the Chinese New Year.

Sector Outlook: O&G

Optimism is expected in the oil and gas sector, driven by speculation of reduced Russian exports amid U.S. sanctions. The plantation sector remains unattractive due to declining CPO prices.

Technical Outlook

The FBM KLCI sustained its recovery with a bullish candle, staying above the lower Bollinger Band. However, indicators are negative, with the MACD below the Signal Line and RSI under 50. Immediate resistance is at 1,600, while support is around 1,530.

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Staff Writer

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