[MALAYSIA] Bursa Malaysia, the Malaysian stock exchange, has been showing signs of recovery in recent weeks, which is great news for investors. The recovery follows a volatile period marked by global economic uncertainties and market fluctuations. As we enter March 2025, Bursa Malaysia has seen significant improvements in sentiment, particularly following a rebound in Wall Street indices. This positive momentum, alongside technical indicators suggesting further growth, is bringing optimism to the local market.
On March 17, 2025, Bursa Malaysia started the week on a positive note. The FBM KLCI, the benchmark index, rose 5.43 points, reaching 1,517.58. This was in line with the momentum observed in global markets, particularly Wall Street, which closed the previous week on a rebound. However, as market participants are still cautious about the US trade situation, the positive signs in Bursa Malaysia need to be viewed with some caution.
Despite this caution, technical analysis suggests that the recent rally in Bursa Malaysia has a strong chance of continuing. TA Securities Research highlighted that short-term technical indicators are showing positive signs, suggesting the late-week rebound is likely to follow through into the coming weeks. This is especially important for investors looking for opportunities after the previous week's heavy selloff.
"Positive short-term technical momentum indicators suggest the late-week rebound should follow through this week as attractive bargain-hunting opportunities emerge following last week's heavy selloff," said TA Securities Research in its commentary.
This technical analysis indicates that the market could experience more growth, but it remains essential for investors to stay vigilant, especially as global trade tensions could create volatility. Immediate support for the FBM KLCI is expected to hold at 1,472, which represents a key retracement level from previous market movements. On the upside, key resistance levels are seen at 1,550, followed by 1,580, and a tougher hurdle at 1,605.
Key Sectors Driving the Recovery
The recovery in Bursa Malaysia is being fueled by significant movements in key sectors. For example, energy stocks have seen notable gains, with YTL Power rising by 14 sen to RM3.28, and Tenaga Nasional climbing 14 sen to RM13.54. This is a sign that investors are regaining confidence in the energy sector, particularly as market conditions stabilize.
The banking sector has also shown improvement, with major banks such as Maybank, CIMB, and Public Bank posting modest gains. Maybank added six sen to RM10.38, CIMB climbed 10 sen to RM7.17, and Public Bank rose three sen to RM4.51. This is a positive development for the broader market, as banks play a vital role in the economy and investor sentiment.
Rakuten Trade, a research house, also echoed optimism, noting that bargain hunters are continuing to pick up stocks, particularly around the 1,500 mark on the FBM KLCI. "With the 'party' still ongoing in Hong Kong, we reckon ASEAN markets may experience some dull moments but will certainly make a comeback in due course," they said.
Market Outlook: A Cautious Optimism
While the market recovery is promising, caution remains paramount. Investors continue to monitor the developments surrounding global trade, particularly in the United States, as tensions between the US and other trading partners have the potential to impact market sentiment. With escalating trade concerns, some volatility is still expected, and the market may remain range-bound for the time being.
TA Securities Research points out that while there is a positive outlook, market sentiment is still fragile. Investors are cautious about how global developments might affect local markets. “Immediate support is maintained at 1,472, with next key retracement supports seen at 1,450, followed by 1,433. On the upside, immediate resistance is set at 1,550,” the report mentions.
For those looking to invest, this range-bound market means that opportunities are still available, but they require careful monitoring. Technical analysis suggests that the market could move upward if the recovery continues to build momentum, but potential obstacles such as global trade issues remain in play.
The Road Ahead: Key Indicators to Watch
As investors look toward the future, there are several key indicators to monitor. The performance of major sectors, especially energy and banking, will be critical in driving further growth. Additionally, global factors such as US economic performance and trade relations will continue to have a significant impact on local market sentiment.
For now, market participants are focusing on the upcoming corporate earnings reports and developments on the US trade front. Should these factors continue to improve, Bursa Malaysia’s recovery could gain further strength. However, as highlighted by Rakuten Trade, patience will be required, as ASEAN markets, including Malaysia, may experience quieter moments before making a full recovery.
Bursa Malaysia is on a path to recovery, as evidenced by the positive momentum observed in recent days. While global factors, particularly trade tensions, could still pose challenges, the outlook for the Malaysian stock market remains cautiously optimistic. As TA Securities Research points out, bargain-hunting opportunities are emerging, and technical indicators suggest that the recovery may continue.
For investors, it is important to remain vigilant and closely monitor both domestic and global developments. While the local market is showing signs of improvement, the road ahead may still be bumpy, and being prepared for potential volatility will be key to navigating this recovery. As the market follows through on its rebound, staying informed and adaptable will be the best strategy for capitalizing on the opportunities that lie ahead.
WhatsApp
Instagram
Threads
