BELOW are excerpts of viewpoints from two selected research houses on what investors can expect in the day ahead:
Inter-Pacific Research
The key index faltered again, slipping to the 1,600 level at the close of yesterday’s trading on sustained selling by foreign funds.
Much of the selling emerged in the afternoon session in tandem with the weakness among regional indices that reacted negatively to China’s underwhelming stimulus measures.
Broader market conditions were still mixed-to-lower, resulting in total losers to still be ahead of gainers for the day.
The FBM KLCI’s inability to preserve its minute recovery is leaving conditions increasingly cautious again, particularly as foreign players are still reducing their exposure to Malaysian equities.
The buying support has been scant and with few catalysts emerging, the key index’s insipid trend is likely to prolong that would also leave the 200-day moving average line at 1,595 precarious again.
It this level is breached, a bearish streak could emerge and the selling spree may escalate.
Therefore, the FBM KLCI is at the crossroads again with supports below the critical 1,595 level pegged at 1,591 and 1,583 respectively.
The resistances, meanwhile, are at 1,605 and 1,610 points respectively. Meanwhile, the impending release of the country’s 3Q 2024 GDP (gross domestic product) is unlikely to surprise as it is widely tipped to be around the advance GDP estimate of a 5.3% yar-on-year (yoy) growth.
Malacca Securities Research
The FBM KLCI retreated as gains in the energy sector were offset by losses in industrial products & services; the latter declined due to China’s latest fiscal measures which fell short of market expectations and pressured aluminium prices lower.
Meanwhile, the US Producer Price Index (PPI) met expectations with both PPI and Core PPI posting a monthly increase of 0.2%-0.3%.
Consequently, Wall Street closed in negative territory with the Nasdaq experiencing the largest decline. Today, traders will closely watch (i) US retail sales and (ii) Malaysia’s 3Q 2024 GDP data.
In the commodities market, Brent crude hovered around US$72/barrel, weighed down by OPEC+ demand forecasts.
Gold prices retreated further to US$2,566/oz as the greenback gained strength while CPO (crude palm oil) prices traded below the RM5,000/metric tonne psychological level with a slowdown in exports impacting vegetable oil prices.
The FBM KLCI index retreated towards the 1,600 level. Meanwhile, the technical readings on the key index were negative with the MACD Histogram turned negative and the RSI trended below 50.
The resistance is envisaged around 1,615-1,620 while the support is set at 1,580-1,585. – Nov 15, 2024
