BELOW are excerpts of viewpoints from two selected research houses on what investors can expect in the day ahead:
Inter-Pacific Research
There was no reprieve for the FBM KLC as it continues to lose ground on Wednesday (Oct 30) with the key index slipping further to close near the 1,600-support level.
As it is, net selling by foreign funds intensified due to the continuing cautiousness over the tight US presidential election that also affected sentiments among Asia-Pacific markets. Similarly, the lower liners were also in a sea of red with total losers overwhelming gaining ones.
With the key index breaking successive technical supports with relative ease, the dour trend appears to be holding for now and could leave the key index in a state of flux for longer.
Therefore, near-term conditions are still insipid with the 1,600-support level now under threat due to the prevailing weak buying interest.
Sentiments are still affected by the uncertainties over further interest rate cuts in the US while China’s economic outlook is also dithering that could also keep Malaysia’s exports in check for longer.
Consequently, the downside risk still prevails with the ensuing supports below the 1,600 level are set at 1,595 and 1,590 level respectively – the latter being the critical 200-day moving average line.
A breach of the level would herald a bearish trend on the key index. On the other hand, the resistances are at 1,610 and 1,615 points respectively
Malacca Securities Research
The local bourse ended softer ahead of the US presidential election with all sectors ending in negative territory except construction.
Also, sentiment turned weaker in the US as investors digested earnings reports from Microsoft and Meta Platforms while Apple posted weaker-than-expected sales in China.
Weekly US jobless claims fell more than anticipated, suggesting a robust employment market while the core PCE (personal consumption expenditures price) index ticked higher, potentially influencing the US Federal Reserve’s decision in the upcoming FOMC (Federal Open Market Committee) meeting.
Investors are now looking toward key economic data, including US non-farm payrolls and ISM manufacturing, due later tonight.
In the commodities market, Brent crude surged amid rising tensions in the Middle East while gold prices retreated on profit-taking and CPO (crude palm oil) prices climbed closer to the RM4,700/metric tonne level.
The FBM KLCI index ended at the 1,601 level and closed below all the MA lines. The technical readings on the key index were negative with the MACD histogram remained negative and the RSI trended below 50.
The resistance is envisaged around 1,616-1,621 while the support is set at 1,581-1,586. – Nov 1, 2024
