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 sustained its recovery for a third day on the back of buying support from local funds to keep the key index comfortably above the 1,600 psychological level.
However, it surrendered most of its intraday gains to end the day with only minor gains as foreign funds were still net sellers.
Many Bursa sector indices also ended the day higher even as total gainers and losers were nearly equal. However, traded volumes were some 10% lower than a day earlier.
After three days of gains, the key index could see some profit taking emerging in the day ahead.
As it is, some early signs of selling were already apparent yesterday and may escalate as market players may opt to lock-in the gains before the weekend.
Although there remains selling pressure from foreign funds, local funds could still provide some support to preserve the key index above the 1,610 level for now, thereby keeping the overall selling pressure relatively benign.
This also means that the FBM KLCI should remain above the 200-day moving average line to ensure the longer-term bullish trend is intact.
The 1,610 level is the immediate support, followed by the 1,600-1,606 levels. The resistances, meanwhile, are at 1,620 points and 1,625 points respectively.
Malacca Securities Research
The FBM KLCI rebounded further after Gamuda Bhd and 99 Speed Mart Retail Holdings Bhd were announced to be added into the key index.
Meanwhile, Wall Street closed lower ahead after jobless claims rose 9,000 to 224,000 from last November which may influence the US Federal Reserve’s rate cut decision in the upcoming Federal Open Market Committee (FOMC) meeting.
Traders will be monitoring non-farm employment change and unemployment rate later today.
In the commodities market, Brent crude slipped further following OPEC+ decision to delay the re-start of its oil production cuts by three months.
Gold edged lower despite overall economic data this week pointing to a potential rate cut while CPO (crude palm oil) prices advanced further, closing above the RM5,100/metric tonne level.
The FBM KLCI closed higher at the 1,615 level. Meanwhile, the MACD histogram formed another positive bar and the RSI hooked above 50, indicating that the momentum is positive at this juncture.
Resistance is envisaged around 1,630-1,635 while the support is set at 1,595-1,600. – Dec 6, 2024
