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 retreated yesterday, ending its recent upward streak as profit taking from foreigners took hold that saw it buck the gains among regional indices that were buoyed by China’s stimulus measures.
However, the pullback was benign as there were still support from domestic buyers to help keep the key index above the 1,670 level at the close.
Conditions in the broader market was mixed with total losers still ahead of winning stocks amid the still anaemic market interest.
It appears that stronger impetuses are needed to lift the market which is unsurprising given that key index’s 15% YTD (year-to-date) gains have largely reflected its fundamentals.
At the same time, the FBM KLCI is once again approaching its major technical hurdles that may require stronger push for the level to be cleared convincingly.
With the selling pressure also light, the key index should be able to stay steady for the time being, supported by nibbling on some of the index heavyweights that could keep the key index range-bound for now.
In the near-term, the key index will attempt to hold on the 1,670 level with some mild upside potential that may see it make a pass at the 1,675 level. Further ahead, the 1,780 level is the next resistance, while the supports are at 1,665 and 1,660 levels respectively.
Malacca Securities Research
The FBM KLCI closed slightly lower as profit-taking emerged in selected index heavyweights but a key factor to watch will be the strength of the ringgit.
Meanwhile, US stock markets ended positive with both the Dow and S&P 500 charged to record highs as (i) Micron leading the tech sector higher; and (ii) the US GDP growth has exceeded expectations at 3.0% for 2Q 2024.
Traders will be closely monitoring the PCE (Personal Consumption Expenditures Price) Index tonight and the non-farm payroll report next week.
In the commodities market, Brent crude fell below US$74/barrel as Saudi Arabia shifted its focus towards regaining market share by abandoning its previous US$100/barrel price target.
Elsewhere, gold surged above US$2,670/oz on expectations of a rate-cut environment while CPO (crude palm oil) prices traded near RM4,200/metric tonne (MT) before closing lower at RM4,150/MT.
The FBM KLCI index closed slightly lower towards the 1,671 level. However, the technical readings on the key index were mixed with the MACD histogram having entered the negative territory but the RSI stayed above 50.
The resistance is envisaged around 1,686-1,691 while the support is set at 1,651-1,656. – Sept 27, 2024
