BELOW are excerpts of viewpoints from two selected research houses on what investors can expect in the day ahead:
Inter-Pacific Research
The slide continues on the FBM KLCI, albeit it was relatively benign as the key index managed to recoup most of its intraday losses.
Conditions on the key index were largely muted with most market players remaining on the sidelines.
Although the broader market was relatively mixed, profit taking continues to take precedence and resulting in market breadth staying well in the negative territory.
However, trading volumes picked-up by nearly a quarter from the previous day to 3.8 billion shares.
Near-term market conditions are likely to remain mostly indifferent as the end of the results reporting season approaches. Thus far, results have generally been encouraging with many companies posting improved earnings albeit some were still below expectations.
Nevertheless, the key index could attempt to gain further traction as it looks to recapture the psychological 1,450 level that could also help to renew some confidence to the market and find some stability after the recent selling by local institutions.
The attempts could be helped by the overnight gains on Wall Street with the hurdle further ahead of the psychological level set at the 1,455 level. The supports, meanwhile, remain at 1,444 and 1,442 points respectively.
Malacca Securities Research
The FBM KLCI ended flat for the session as traders traded cautiously in line with the weak regional market sentiment.
However, Wall Street continued to charge higher despite the mixed statements from several US Federal Reserve’s officials with a boost from the consumer confidence index.
Investors will continue to monitor the upcoming core PCE ((Personal Consumption Expenditures) and ISM Manufacturing PMI (Purchasing Managers Index) data later this week.
We expect some buying interest to spill over to stocks on the local front following the surge on Wall Street.
On the commodity markets, Brent crude pices ended positively above the US$81/barrel mark in view of further production cuts from OPEC+ meeting tomorrow (Nov 30). Besides, gold extended its gains above the US$2,000/ounce level.
The FBM KLCI is still in the consolidation phase. Meanwhile, technical readings on the key index are negative with the MACD Histogram extending another negative bar while the RSI continued to decline below the 50 level.
The resistance is pegged around 1,455-1,460 while the support is at 1,430-1,440. – Nov 29, 2023
