KUALA LUMPUR: Investors treaded carefully into the new year amid ongoing caution over the return of the Trump administration to the White House later this month.
Malaysia's benchmark stock index opened 1.01 points lower to 1,641.32 on the first trading day of 2025 after closing off 2024 with a six-day rally.
Despite the index registering a 13% gain over the year, the accelerated foreign selling in the fourth quarter of the year disappointed the projections of most research firms, which had expected a more bullish closing level.
Rakuten Trade noted in its first report of the year that the FBM KLCI's closing level was way off its 2024 target of 1,750 due mainly to the major foreign outflows, but maintained that the 1,700 threshold will be surpassed in the first quarter of 2025.
"We expect the index to hover within the 1,645-1,655 range today," said the research firm.
Meanwhile, Malacca Securities Research took a more conversative view of the day's trading, anticipating the bourse to track the weaker tone of the US market on New Year's Eve.
The research firm said the negative performance may cap the upside for the technology sector for now, while it favours the oil and gas sector following the rebound in Brent crude oil prices.
It also said the outlook on glove stocks remain positive as the ringgit continues to hover around RM4.46/US$.
"Looking ahead, we anticipate a potential surge in construction, building materials and utilities earnings, driven by data centre investments," it said in a note.
Leading blue chips were seen retreating at the start of 2025 trading, led by Tenaga Nasional down eight sne to RM14.86, YTL Power shedding five sne to RM4.37 and PETRONAS Chemicals falling nine sen to RM5.08.
Few counters sustained an increase although Nestle rose nine 32 sen to RM100.30.
Of actives, SNS Network gained three sen to 69 sen, Vanzo rose one sne to 22.5 sen and Harvest Miracle added 1.5 sen to 18 sen.
