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 lost pace yesterday to end the session below the 1,600 level again amid the return of fresh selling, mainly by foreign institutions.
The key index started the day on a positive note but the gains were not sustainable amid the new round of selling as market players turned cautious on the escalating geopolitical conflict between Russia and Ukraine.
Conditions in the broader market was mixed-to-lower resulting in total losers still ahead of gaining ones.
The FBM KLCI’s near-term outlook appears precarious again after it failed to hold on the psychological 1,600 level to settle close to the 200-day moving average line at around 1,595 points again.
The sustained selling by foreign funds is again leaving the key index to dither as local institutions attempt to provide the much-needed support for the key index to stay above the long-term uptrend line.
However, with market conditions still unsettled, the key index could also dither further as it looks to find more traction to stay above the long-term uptrend line, otherwise a bearish trend could take over.
This may see the key index lingering near the 1,595-1,600 levels in the day ahead with the ensuing support and resistance levels pegged at 1,590 and 1,607-1,610 points respectively.
Malacca Securities Research
The FBM KLCI failed to hold above the 1,600 mark for the second consecutive day, closing lower at 1,598.18, weighed down by banking heavyweights.
In the US, Wall Street ended on a muted note with US futures remained flat following NVIDIA’s earnings announcement as its revenue forecast fell short of expectations, suggesting that its rapid growth may be nearing its limits.
Meanwhile, traders will continue to monitor several key events like the (i) US existing home sales; (ii) initial jobless claims; and (iii) Eurozone consumer confidence index.
In the commodities market, Brent crude traded along US$73/barrel. Gold prices surged past the US$2,600/oz mark while CPO (crude palm oil) prices retreated further below the RM4,800/metric tonne psychological level.
The FBM KLCI index failed to be supported above the 1,600 psychological level. All the technical readings were negative with the MACD Histogram closing on the negative territory and the RSI is trending below 50.
The resistance is envisaged around 1,613-1,618 while the support is set at 1,578-1,583. – Nov 21, 2024
