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 lost further ground yesterday in line with weak sentiments afflicting regional equities that was brought about by lingering uncertainties over prospects of the global economy.
This prompted further profit taking and selling with total losing stocks again overwhelming gaining ones by a wide margin.
Expectedly, most lower liners were also in the red with construction stocks the biggest loser for the day. Traded volumes were again little changed.
With the key index succumbing to steep falls over the past two sessions, market conditions are looking increasingly precarious with the 1,600 level at risk of being breached again.
As it is, market sentiments have become more subdued amid the persistent selling since the start of the year with the lack of buying interest likely to leave key index on the downtrend for longer.
This also means that hopes for the FBM KLCI to mount a comeback from the 1,600 support also looks challenging for now as more market players could opt for the sidelines until there are more clarity on the market’s direction, particularly with foreign funds still selling down Malaysian equities.
If the 1,600 level gives way, the key index could head to its next supports at 1,595 points and the most recent low at 1,591 points. On the other hand, the resistances are at 1,605 points and the 200-day moving average line at around the 1,610 level.
Malacca Securities Research
The local front continued to close on a negative tone with YTL-related counters dragging the key index lower.
Meanwhile, equity markets in the US were closed in observance of the passing of former US president Jimmy Carter.
At the time of writing, Wall Street futures are down with traders shifting their attention to the December non-farm payrolls due later today.
In the commodities market, Brent crude traded above US$77/barrel level amid declining US inventories. Gold prices are hovering along the US$2,670/oz level while CPO (crude palm oil) prices have fallen below RM4,300/metric tonne.
The FBM KLCI broke down the moving average lines and is currently testing the key 1,600 psychological support. The MACD negative histogram continued to expand while RSI reading is below 50, indicating negative momentum at the current juncture.
Resistance is anticipated around 1,615-1,620 while support is set at 1,580-1,585. – Jan 10, 2025
