KUALA LUMPUR (March 24): The FBM KLCI is set to test the 1,750 resistance level amid the escalating Middle East crisis and the release of key economic data this week, said BIMB Securities.

“Post-Raya, the FBM KLCI is poised to test the 1,750 resistance level, though immediate performance will hinge on geopolitical developments in the Strait of Hormuz and their impact on Brent crude volatility. 

"While the National Semiconductor Strategy and data centre expansion provide a structural tailwind for technology and utilities, investors should closely monitor February's trade data and the PPI (producer price index) release on March 27.”

“These indicators will be vital in assessing how sustained commodity price pressure is affecting domestic manufacturing margins and broader corporate earnings outlooks heading into the second quarter,” the research house further said in a note on Tuesday.

The benchmark index closed the week at 1,720.7 points, reclaiming the 1,700 level as local institutional buying helped offset persistent foreign outflows. 

Local institutions provided support with a total net buy of RM333 million, while foreign investors remained net sellers with a RM168 million outflow, according to BIMB Securities.

The index showed resilience with a 1.3% week-on-week (w-o-w) gain, outpacing regional peers such as the S&P 500 (-1.9%), Nikkei 225 (-0.8%), and Shanghai Composite (-3.4%), though it lagged the Straits Times Index (+2.2%) and Korea’s Kospi (+5.4%), which was largely buoyed by semiconductor optimism.

The research house noted that commodity-linked sectors led the charge, with the Industrial Products index surging 4.5% and Plantations up 2.9%, supported by stronger Brent crude and crude palm oil (CPO) prices. Brent crude spiked 8.8% w-o-w to US$112.19 (RM442.59) per barrel, while CPO rose 1.2% to RM4,580/metric ton. In contrast, gold prices saw a sharp 10.5% pullback to US$4,492/oz.

BIMB Securities has placed five counters on its Post-Raya watchlist, highlighting themes from data centre expansion to resilient commodity prices. 

The research house has maintained its 'buy' call on Inari Amertron Bhd (KL:INARI) with a target price of RM1.92, citing its focus on advanced packaging and photonics as positioning it as a structural winner in the shift towards high-speed optical transfers. 

PETRONAS Dagangan Bhd (KL:PETDAG) was given a 'hold' call with a target price of RM22.30, supported by solid cash flow and dividend yield that provide a safety net amid the festive-driven rebound in domestic travel demand. 

Telekom Malaysia Bhd (KL:TM) also received a 'hold' call with a target price of RM7.78, with BIMB Securities noting its role as the fixed-line backbone provider for Malaysia’s 2026 data centre boom. 

Meanwhile, SD Guthrie Bhd (KL:SDG) was rated a 'buy' with a target price of RM6.10, as it stands to benefit from resilient CPO prices, high upstream margins, and ongoing land bank optimisation for industrial use. 

Lastly, Tenaga Nasional Bhd (KL:TENAGA) was assigned a 'buy' call with a target price of RM16.64, with BIMB Securities citing its position as an essential utility play for the energy-intensive artificial intelligence sector, estimating an additional 92GW of power demand from regional data centres by 2027.