CIMB Research advises investors to stay on sidelines


MIDF Research said in retrospect, foreigners offloaded -RM19.5bil and -RM6.9bil in 2015 and 2014 respectively.

KUALA LUMPUR: CIMB Equities Research continues to advocate investors to stay on the sidelines this week to the sluggish technical outlook.

It said on Monday the FBM KLCI fell 27 points week-on-week as the escalating US-China trade tension dampened global market sentiment last week. 

China immediately said in a statement that it is forced to retaliate after US tariff hike on more than US$200bil in goods from China took effect last Friday.

“Local bourse sank deeper and moved back below the previous downtrend line from the high of 1,732 last Friday. The technical outlook for the market remains sluggish as the key index is still trading below all of the EMAs. 

“The index is currently retesting 1,610. A break below the critical 1,610-1,600 levels would be bearish for the market. Nevertheless, any positive news coming from the trade disputes is likely to trigger a significant rebound. 

“The falling 30-day and 50-day EMAs will serve as an immediate resistance. We continue to advocate investors to stay on the sidelines this week,” it said. 

CIMB Research said there was no change to its long-term bearish view on the index given that the final phase of KLCI’s 126-month cycle is still in progress, where selling pressure is likely to be at its strongest. 

Subscribe or renew your subscriptions to win prizes worth up to RM68,000!

Monthly Plan

RM13.90/month

Annual Plan

RM12.33/month

Billed as RM148.00/year

1 month

Free Trial

For new subscribers only


Cancel anytime. No ads. Auto-renewal. Unlimited access to the web and app. Personalised features. Members rewards.
   

Next In Business News

Oil prices ease, Russia, Iran tensions check losses
Gold drops nearly 2% on profit-booking, Trump's Treasury secretary pick
Bonds bounce, dollar dips on Bessent pick
Mr DIY Indonesian business plans IPO to raise up to US$297mil
China's NEV market in a league of its own
Singapore Oct core inflation at 2.1% y/y, lowest in almost 3 years
TMK Chemicals aims to raise RM385mil from Main Market IPO
Malaysia's September LI up 1.8%, shows continued economic growth - DoSM
CBH Engineering inks underwriting deal with Mercury Securities
ACE Market-bound Topvision aims to raise RM17.89mil from public offering

Others Also Read