KUALA LUMPUR (Feb 20): Hong Leong Investment Bank (HLIB) Research said in the near term, the FBM KLCI is expected to remain choppy (support: 1,500-1,520), as investors weigh the ongoing February reporting season, a delay the US Federal Reserve’s rate-cut trajectory, and the sustainability of the Shanghai Composite Index’s recent rebound.

In a traders’ brief note on Tuesday, the research house however said it remains hopeful for a reprieve in the KLCI in the long term (resistance: 1,550-1,5,72-1,600), fuelled by stabilising domestic politics and increased risk appetite by foreigners for the under-owned Bursa Malaysia, with the foreign shareholding ticked up by 0.1% to 19.6% in January and net inflows of RM1.6 billion year-to-date, followed by a brighter earnings outlook for KLCI components (2023:- 0.3%; 2024 forecast: +8.2%), a US soft landing narrative, and China’s indications of strong measures to revitalise its slowing economy, which will spur positive spillover effects on key trading nations like Malaysia.

Meanwhile, Bloomberg reported that Asian stocks held to tight ranges on Tuesday, as investors awaited fresh catalysts after US markets were closed for a holiday on Monday.

Australian stocks fell, weighed down by BHP Group after the miner missed profit estimates, while Japanese stocks advanced slightly. Futures contracts for Hong Kong shares edged higher, while contracts for US equities were mostly unchanged after Monday’s holiday.

A gauge of global stocks sat just 1.1% from its peak after the S&P 500 set a fresh record last week, while the region-wide Euro Stoxx 50 traded near a two-decade high.