BELOW are excerpts of viewpoints from two selected research houses on what investors can expect in the day ahead:
Inter-Pacific Research
The FBM KLCI tipped higher to close above the 1,640 level yesterday, boosted by the pick-up of selective index linked stocks to cushion against the heavy selling in YTL-related stocks.
Conditions in the broader market also remained mixed with total losers just pipping gainers for the day as fresh buying interest remains benign.
Nevertheless, there were renewed buying from foreign funds as they bargain hunt on some of the recent big losers.
We continue to see market conditions remaining largely subdued due to the continuing lack of buying interest and fresh leads with most market players also awaiting the unveiling of Budget 2025 this Friday (Oct 18) before deciding on their next course of action.
In the meantime, most market players will still be on the sidelines and this is likely to see the key index maintaining a mostly sideway track, unable to gain significant traction due to the low buying interest.
Consequently, the 1,640 level may not even hold as quick profit taking may emerge to push the key index down, hence it may continue to linger within the 1,630 and 1,640 levels again. Beyond these levels, the support and resistance levels are still at 1,625 and 1,645 points respectively.
Malacca Securities Research
Local stocks traded mixed despite both the FBM KLCI and FBM Small Cap rebounded ahead of the tabling of Malaysia’s Budget 2025.
In the US, profit-taking emerged as markets digested the latest corporate earnings whereby technology giants were affected after ASML tumbled 16% following a weaker-than-expected 2025 sales outlook.
Looking ahead, traders are expected to closely monitor upcoming economic data, including the US core retail sales, US jobs data and China’s GDP.
In the commodity markets, Brent crude continues to weaken due to demand concerns and easing tensions in the Middle East.
However, gold prices remained firm, trading above US$2,660/oz to close at an all-time high. The crude palm oil (CPO) market also rebounded by closing near RM4,300/metric tonne.
The FBM KLCI index closed higher at the 1,641.97 level. Meanwhile, the technical readings on the key index are improving with the MACD histogram having turned positive but the RSI trended below 50.
The resistance is envisaged around 1,656-1,661 while the support is set at 1,621-1,626. – Oct 16, 2024
