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 managed to eke-out gains late in the afternoon session to regain the 1,640 level at the close but overall market sentiments remained dour, affected by the rising tensions in the Middle East.
Selling pressure was prevalent for much of the day as profit taking still dominated trades. The broader market shares were also insipid as market participation continues to wane and slipping to 3.3 billion shares.
There is no change to the immediate market outlook that will remain affected by the heightened political climate in the Middle East.
The fluidity of the issue is likely to keep most market players on the sidelines as they wait for the situation to ease.
In the interim, selling pressure is likely to dominate trades and cause the key index to drift again. Global equity markets also remain unsettled and will still dictate the key index’s performance for the time being.
Consequently, the 1,640 level would be under threat again and profit taking could still come to fore.
If the above level is broken, the supports will be lowered to 1,638 and 1,630 points respectively. The resistances, meanwhile, are at 1,641-1,643 points, followed by the 1,650 level.
Malacca Securities Research
The FBM KLCI had a volatile session, rebounding from negative territory to close on a positive note, driven by bargain hunting in banking heavyweights.
In the US, Wall Street ended slightly lower after the release of mixed economic data. Jobless claims were rising but the ISM services PMI showed expansion while traders seem to be waiting for the non-farm payroll report due later tonight.
In the commodities market, Brent crude surged by 4% amid growing concerns over developments in the Middle East while gold prices remained steady around the US$2,650/oz level. Meanwhile, CPO (crude palm oil) price broke above RM4,200/metric tonne, signalling the start of an uptrend.
The FBM KLCI index rebounded towards the 1,641 level. However, the technical readings on the key index were negative with the MACD histogram having formed another negative bar and the RSI trended below 50.
The resistance is envisaged around 1,656-1,661 while the support is set at 1,621-1,626. – Oct 4, 2024
