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 again yesterday, surrendering the 1,600 level and the 200-day-moving average level as foreign institutions continue to be net sellers with banking stocks the big losers.
Market conditions were insipid for the most part that also left the key index to drift. Similar conditions prevailed among the broader market shares as they also saw renewed selling which left market breadth in the negative amid a decline in traded volumes that slipped below the 3 billion shares level again.
Once again, the near-term outlook has turned bearish following the breach of the 200-day moving average.
As it is, foreign market players continue to reduce their exposure on Malaysian equities and this has largely contributed to the reversal of the FBM KLCI’s positive trend.
Although there is support, they are still mild and unlikely to provide an immediate bolster to market sentiments.
As such, the FBM KLCI is likely to continue drifting for the time being with the downside also sustaining, hampered by the lack of positive leads that could also see market interest remaining on a low gear.
The supports are now at the 1,588-1590 levels, followed by the 1,576 level. The hurdles, meanwhile, are at 1,600 points and at 1,605 points respectively.
Malacca Securities Research
The FBM KLCI reversed into the negative territory, retreating below the psychological 1,600 mark. Meanwhile, US markets were closed for the Thanksgiving holiday.
With recent PCE data indicating an uptick and the imposition of trade tariffs by the Donald Trump’s administration exerting pressure on the inflation pressure going forward, these factors could reinforce the case for a gradual interest rate cut cycle by the US Federal Reserve which translates to limited upside move on the stock markets.
This week, traders will continue monitoring key economic events like the (i) Eurozone CPI; (ii) Chicago PMI; and (iii) China’s Manufacturing PMI.
In the commodities market, both the Brent crude and gold prices steadied around the US$72/barrel and US$2,600/oz levels.
Meanwhile, CPO (crude palm oil) prices rebounded above the RM4,900/metric tonne level as buying interest picked up ahead of the monthly data releases in early December.
The FBM KLCI is hovering below the 1,600 level and all the MAs line. The MACD Histogram, however has turned positive but theRSI is still trending below 50, indicating that the momentum is mixed at this juncture.
The resistance is envisaged around 1,612-1,617 while the support is set at 1,577-1,582. – Nov 29, 2024
