BELOW are excerpts of viewpoints from two selected research houses on what investors can expect in the day ahead:
Inter-Pacific Research
Malaysian equities snapped a four-day winning streak as profit taking emerged to send the key index lower yesterday, bucking the largely positive performance among regional equities that continues to be buoyed by Wall Street’s record-breaking run.
Broader market stocks were also similarly affected, save for technology-related stocks that maintained their ascend.
As a result, market breadth turned negative with a pick-up in traded volumes to nearly 3.8 billion shares changing hands yesterday.
The US Federal Reserve’s widely expected 25-basis point (bps) interest rate cut could help to shore up sentiments again while enabling Malaysian equities to mount a rebound to end the week on a winning note.
However, we think the upsides could be modest as there could still be bouts of quick profit taking activities that could leave market conditions tepid and fresh buying interest benign.
Consequently, the key index may veer towards a drifting mode in the day ahead as it also looks to stay above the 1,620-level following its rebound from the 200-day moving average line at the 1,600 level.
Apart from the 1,620 level, the other support is at 1,615 points while the resistances are at 1,632 points and 1,639 points respectively.
Malacca Securities Research
Sentiment on the local bourse shifted as profit-taking activities emerged.
Despite US jobless claims coming in above consensus, Wall Street continued to rally, driven by ongoing optimism following Donald Trump’s victory and the US Fed’s 25bps rate cut.
Looking ahead, we anticipate stronger-than-expected sentiment in the US, bolstered by expected corporate tax cuts while remaining cautiously optimistic on the local front.
Also, the interest rate spread between the US and Malaysia may support the ringgit albeit at a more moderate pace.
In the commodities market, Brent crude traded flat around US$75/barrel. Meanwhile, gold prices rebounded above US$2,700/oz following the US Fed’s rate cut. CPO (crude palm oil) prices continued to rally, closing near the RM5,000/metric tonne level.
The FBM KLCI index closed lower towards the 1,623 level. However, the technical readings on the key index were mixed with the MACD histogram having formed positive bars but the RSI trended below 50.
The resistance is envisaged around 1,638-1,643 while the support is set at 1,603-1,608. – Nov 8, 2024
