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 market weakness yesterday with the key index losing ground after it surrendered all of its intraday gains as foreign institutions remained the net sellers.
Market conditions were still insipid for the most part, prompting the FBM KLCI to buck the region’s mostly positive performance that were buoyed by expectations that the US Federal Reserve will reduce interest rates further next week.
The lower liners were mixed but market breadth stayed negative despite volumes rose past 3 billion shares.
We continue to see near-term market conditions staying unsettled heading into the weekend due to the sustained selling by foreign funds that is keeping the upsides in check.
As it is, domestic funds are just doing enough to cushion the foreign selling and keeping the key index above the 1,600 level after the 200-day moving average line was breached, leaving the overall market outlook bearish again.
As such, we think much of present trend is likely to prevail as there are few signs of foreign funds ending their selling spree, thus leaving the key index on a drifting trend for the time being.
This also means that the 1,600 level remains under threat and if it is breached, the ensuing support is at 1,595 points. The hurdles, meanwhile, remain at the 1,610 and 1,615 levels respectively.
Malacca Securities Research
The FBM KLCI trended lower for the fifth consecutive day with healthcare sector continued to decline.
Similarly, the US market ended on a correction following some concerns of an overvalued market following last month’s US election.
The Dow fell for a sixth consecutive day, marking its longest losing streak since April. Meanwhile, traders will also continue to monitor for Eurozone industrial production data later today.
In the commodities market, Brent crude rose to settle near US$73/barrel with expectations for a supply glut in 2025 countering geopolitical risks.
Gold prices once again retreated below the US$2,700/oz mark while CPO (crude palm oil) prices continue to trade below the RM5,000/metric tonne level after having hit the RM5,200/MT resistance.
The FBM KLCI continues to retreat after hitting the 60-day moving average line. The MACD Histogram has performed a rounding top formation and the RSI stayed below 50, suggesting a weaker momentum at this juncture.
Resistance is envisaged around 1,617-1,622 while support is set at 1,582-1,587. – Dec 13, 2024
