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 mounted a firm rebound yesterday, climbing to nearly 1,610 points during the day only to ease back below the 200-day moving average line at the close on late profit taking.
Banking stocks were among the market leaders on fresh bargain hunting activities but the broader market stocks were more subdued that left market breadth marginally on the negative side. Traded volumes, meanwhile, were also firmer with just about 3 billion shares traded.
Although yesterday’s uptick was welcomed, the key index’s inability to close above the critical 200-day moving average line still leaves it at the crossroads and to remain largely on the downtrend.
As a result, the insipid trend still holds for now with a long-lasting recovery still uncertain.
Much will be dependent on how firm the follow-through buying interest could be ahead which for now appears to be still benign due to persistent selling by foreign institutions.
As such, the 200-day moving average line at around the 1,600 level remains a formidable level to breach and could still serve as a major resistance.
Above that, the other resistances are at 1,602-1,605 levels, followed by the 1,608 level. The supports, meanwhile, are at 1,593 and 1,590 points respectively.
Malacca Securities Research
The FBM KLCI closed higher, supported by the key index’s semi-annual review cut-off period and the onset of certain re-balancing activities.
Meanwhile, Wall Street ended higher as investors speculated that Donald Trump’s choice of Scott Bessent to lead the Treasury would bring a Wall Street mindset to the role by favouring the stock market and improving overall business conditions.
This week, traders will be focusing on several key economic events, including (i) the FOMC (Federal Open Market Committee) meeting minutes; (ii) US Core PCE (Personal Consumption Expenditures) data; (iii) US 3Q 2024 GDP (gross domestic product); and (iv) China’s Manufacturing PMI (Purchasing Managers Index).
In the commodities market, Brent crude retreated below US$73/barrel while gold prices declined below the US$2,700/oz mark as Israel moved closer to a cease-fire. Meanwhile, CPO (crude palm oil) is still trading on a retracement phase, closing below the RM4,700/metric tonne level.
While the FBM KLCI ended on a positive note, it is trading below all the MAs line. The technical readings were negative with the MACD Histogram closing in the negative territory and the RSI is trending below 50.
The resistance is envisaged around 1,612-1,617 while the support is set at 1,577-1,582. – Nov 26, 2024
