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 succumbed to further selling pressure yesterday as it slipped below the 200-day moving average line at the close.
Market conditions remained cautious amid the continuing lack of positive leads as well as the heightened geopolitical conflict between Russia and Ukraine, leaving sentiments jittery on most regional equity indices.
Tech stocks were also lower after Nvidia’s underwhelming guidance that left most lower liners to drift and market breath on the negative zone.
Once again, market conditions have become bearish following yesterday’s breach of the 200-day moving average line that also left the key index in a state of flux again, particularly as foreign funds are still selling Malaysian equities in favour of the record-breaking US equity markets.
With signs of a quick rebound still elusive, the on-going insipid trend could sustain and more unwinding of the FBM KLCI’s year-to-date (YTD) gains are in the offing.
As it is, the momentum among the key index listed stocks continues to wane with the fewer compelling buying opportunities to entice market players back and it remains to be seen if a quick rebound could materialise.
In the interim, the supports are lowered to 1,582-1,584 levels, followed by the 1,576 level while the hurdles are at 1,592 points and the psychological 1,600 points respectively.
Malacca Securities Research
The FBM KLCI failed to hold above the 1,600 mark as utilities stocks were sold down.
On the flip side, Wall Street ended higher as initial concerns over NVIDIA’s revenue outlook faded with NVIDIA assuring investors of strong demand for its new product line-up, potentially fuelling another rally.
Bitcoin surpassed the US$98,000 mark and is approaching the initial target of US$100,000.
Key economic events traders will focus on include (i) Eurozone HCOB Manufacturing & Services PMI; (ii) S&P Global Manufacturing & Services PMI; and (iii) US University of Michigan consumer sentiment.
In the commodities market, Brent crude rose about 2% to US$74/barrel. Gold prices remained flat around the US$2,600/oz level while CPO (crude palm oil) prices retreated below RM4,800/metric tonne.
The FBM KLCI failed to be supported above the 1,600 psychological mark. The technical readings were negative with the MACD Histogram closing in the negative territory while the RSI has trended below 50.
The resistance is envisaged around 1,603-1,608 while the support is set at 1,568-1,573. -Nov 22, 2024
