BELOW are excerpts of viewpoints from two selected research houses on what investors can expect in the day ahead:
Inter-Pacific Research
There was more weakness on the FBM KLCI yesterday as it lost further ground, closing at its intraday low and again falling below its support – this time below 1,620 points.
Foreign selling was again the main reason for the key index’s decline which also permeated to the broader market, resulting in total losers again overwhelming gainers.
The weak sentiments also saw the lower liner indices losing further ground amid the escalating selling spree.
With the key index’s inability to hold on to the successive technical support levels, the near-term outlook remains dour with the downbeat conditions likely to prevail for now.
Market sentiments remain unsettled due to the uncertainties surrounding the outcome of the US elections and a weak China economy that may still slow Malaysia’s economic prospects.
In addition, the key index’s YTD (year-to-date) gains has left the valuations of many key index constituents fair, thereby limiting the upside potential as market players await their earnings to catch up.
Under the prevailing environment, the next key support at the psychological 1,600 level could be tested as there are still few signs of a recovery as yet. If the level breaks, the other support is at 1,595 points while the resistances are at the 1,618-1,620 levels, followed by the 1,625 level.
Malacca Securities Research
The FBM KLCI and FBM Small Cap began the week on a softer note as selling pressure persisted across the broader market.
Meanwhile, Wall Street rebounded ahead of the US presidential election next week with investors cheered positively as energy supplies remained unaffected by recent developments in the Middle East.
Also, investors are awaiting quarterly financial results from major technology companies such as Apple, Microsoft, Google, Amazon and Meta Platforms.
This week, traders will closely monitor the US core PCE (Personal Consumption Expenditures), US jobs data and China’s manufacturing PMI (Purchasing Managers Index).
In the commodities market, Brent crude fell by more than 6%, closing near US$71/barrel as Middle East tensions eased while gold prices continued rallying toward an all-time high and CPO (crude palm oil) prices remained above the RM4,500/metric tonne level.
The FBM KLCI index ended lower towards the 1,610 level. The technical readings on the key index are negative with the MACD histogram having turned negative while the RSI is below 50.
The resistance is envisaged around 1,625-1,630 while the support is set at 1,590-1,595. – Oct 29, 2024
