Despite stronger regional markets performance, the FBMKLCI (-0.71%) saw a pullback after reaching an intraday high of around 1,639 level dragged down sentiment on the index.
“Moreover, investors might have traded cautiously prior to the non-farm payroll data and ongoing tension in the Middle East,” said Malacca Securities in the recent Market Pulse Report.
Wall Street closed higher, as the Magnificent-7, like Tesla and Nvidia, buoyed gains in the Nasdaq after better-than-anticipated jobs data boosted investor confidence in the US economy.
Meanwhile, both the European and Asian stocks markets closed on a positive note.
The FBMKLCI experienced a volatile ride over the past few trading days, fluctuating between positive and negative territory due to heightened concerns over tensions in the Middle East.
Meanwhile, US stock markets closed on a positive note, rebounding from intraday lows after non-farm payrolls in September exceeded expectations, signalling that the economy remains strong at this point.
In the commodities market, Brent crude surged to nearly USD80 per barrel, driven by developments in the Middle East, while gold prices hovered around the USD 2,650 mark.
Crude palm oil (CPO) closed at RM 4,300, supported by rising demand from India, the top importer, ahead of the Diwali festive season, coupled with the release of China stimulus packages.
Given the positive sentiment on Wall Street, coupled with a slightly weakened ringgit, Malacca Securities expect traders to monitor and accumulate selected technology stocks.
Additionally, the strong surge in crude oil and CPO prices is likely to increase investor interest in the oil and gas and plantation sectors.
Looking ahead to Budget 2025, traders may also position themselves in sectors such as construction, property, building materials, and utilities.
The FBMKLCI index closed lower towards the 1,629 level, violating below the long term moving average.
However, the technical readings on the key index were negative, with the moving average convergence divergence histogram forming another negative bar, but the relative strength index trended below 50.
The resistance is envisaged around 1,644-1,649, and the support is set at 1,609-1,614. – Oct 7, 2024
Main image: newstraitstime
