THE FBMKLCI ended the day flat as afternoon session buying of selected blue chips lifted the index out of the red. Lower liners were mixed.
Sector wise, the Construction sector (+1.4%) and Property sector (+1.2%) led the gains, while the Technology sector (-0.5%) topped the laggard.
“The US stock market rebounded following a downbeat session on Monday, with all three major indices ending in the green, as oil prices eased,” said APEX Securities (APEX) in the recent Daily Highlights report.
The European markets closed the day lower (-0.5%), with all major bourses and the majority of sectors trading in the red. In Asia, stock markets were mixed.
The rally in Chinese markets lost steam after a briefing from the country’s National Development and Reform Commission provided few details on further stimulus.
While mainland China’s CSI 300 skyrocketed over 10% at the open in its return from the Golden Week holiday, the index pared gains to record a gain of 5.9% for the day.
Similarly, Hong Kong’s Hang Seng Index plunged (-9.4%) as the authorities disappointed the market.
“We expect the local bourse to trade sideways amid the lack of fresh catalyst. Likewise, the lower liners may follow a similar pattern,” said APEX.
Sector wise, APEX expects profit taking in the Energy sector and Plantation sector, as the prices of both commodities plunged partly due to lack of further stimulus announced by the Chinese authorities, while tensions in the Middle East dialed down.
For the week ahead, the market will focus closely on the US inflation data and the FOMC minutes’ release on Thursday for further clues on the Federal Reserve’s rate decision moving forward. Also, the on-going corporate earnings releases in the US will be in focus.
The FBMKLCI formed a bullish candle as the key index closed relatively unchanged to hover near the simple moving average 50 level yesterday.
Indicators remained negative as the moving average convergence divergence hovered below the Signal Line, while the relative strength index lingered below 50.
Immediate resistance is located at 1,700. Support is envisaged around 1,600. – Oct 9, 2024
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