THE FBMKLCI closed higher (+0.4%) on Thursday despite mixed performances in the regional markets, as bargain hunting emerged following the recent sell-off. Lower liners ended the day mixed.
“Sector wise, the Technology sector (+0.9%) and Property sector (+0.7%) attracted highest buying interest, while the Energy sector (-0.3%) topped the laggard,” said APEX Securities (APEX) in the recent Daily Highlights Report.
The US stock markets retreated with all three major indices ending the day in the red as sticky inflation data weighed on investors’ sentiments.
In Europe, the stock market similarly slipped (-0.2%) on Thursday, continuing the week’s choppy trade.
The Asian markets traded higher after the Dow and S&P 500 chalked up fresh records on Wall Street overnight. Japan’s Nikkei 225 climbed 0.3%, while South Korea’s Kospi gained 0.2%.
Meanwhile, Hong Kong and Chinese stocks both rebounded from massive sell-off after China’s central bank kicked off a USD 70bil financing facility to fund institutional buying and traders bet on more fiscal stimulus to shore up growth.
“We expect the local bourse to reflect the negative sentiment from the US stock market overnight as inflationary pressure dampened the prospects of larger interest rate cuts ahead,” said APEX.
The Middle East tension has also kept traders on edge. Oil prices surged as Israel’s security cabinet plans to meet Thursday evening to discuss how to retaliate against Iran.
Sector-wise, the Energy sector may attract buying interest as oil price surged, snapping its two day decline. The on-going corporate earnings releases in the US will be in focus.
Meanwhile, the Finance Ministry of China is due to hold a briefing on Saturday that could provide further details on planned government outlays.
The FBMKLCI formed a bullish candle as the key index clawed its way back above the simple moving average 50 yesterday.
Indicators, however, remained negative as moving average convergence divergence hovered below the Signal Line, while the relative strength index
lingered below 50. Immediate resistance is located at 1,675. Support is envisaged around 1,600. – Oct 11, 2024
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