BELOW are excerpts of viewpoints from two selected research houses on what investors can expect in the day ahead:
Inter-Pacific Research
Malaysian equities rebounded at the start of the week as mild bargain hunting emerged following the hefty outflows last week and to also regain some ground alongside regional equities that continues to be buoyed by China’s stimulus measures.
Nonetheless, much of the gains were on relatively low market interest of just 2.8 billion shares for the day. The lower liners also made headway but their upsides were modest albeit technology stocks gained the most.
Near-term market undertone remains unsettled and this could also see the listless trading environment persisting for now despite yesterday’s feeble upsides.
Profit taking activities look to still dominate trades as there has been a gradual shift to greater China equities with foreign funds still on a selling streak for the time being.
Therefore, the FBM KLCI is still at risk of giving up the gains it attained yesterday even as the selling pressure is relatively benign for now.
Still, the key index could be attempting to find some support around the 1,630 levels and to also find some measure of stability.
If the above level fails to hold, the supports are lowered once more to 1,625 and 1,620 points respectively. The resistances, on the other hand, are at 1,640 and 1,647 points respectively
Malacca Securities Research
In line with the upward rally in regional markets, the FBM KLCI rebounded to close above the 1,630 level while the FBM Small Cap stabilised after recent sell-offs.
In the US, Wall Street began the week on a retracement, pressured by rising oil prices due to ongoing developments in the Middle East.
Also, rising bond yields weighed on markets as expectations of a further US Federal Reserve rate cut faded after the non-farm payroll data came in above expectations.
In the commodities market, Brent crude rallied above US$81/barrel amid ongoing tensions in the Middle East which could threaten Persian Gulf oil supplies while gold hovered just below US$2,650/oz. Meanwhile, crude palm oil (CPO) traded nearer to RM4,400/metric tonne ahead of the Diwali festive season.
The FBM KLCI index closed higher towards the 1,635 level. The technical readings on the key index were negative with the MACD histogram having formed another negative bar and the RSI trended below 50.
The resistance is envisaged around 1,650-1,655 while the support is set at 1,615-1,620. – Oct 8, 2024
