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 rebounded quickly to end the week on a firmer note, almost recuperating all its losses from a day earlier.
The recovery was spurred by a strong reading on the US GDP (gross domestic product) and labour market data that eased fears of a recession.
The buying also extended to the broader market as many of these stocks also mounted a rebound to allow gainers to overwhelm losers by a wide margin. Market interest also climbed to nearly 4 billion shares for the day.
Despite the increasingly volatility, market conditions should stay relatively firm, remaining elevated with buying support from foreign funds helping to keep the FBM KLCI near its four-year highs.
The market is now buoyed by expectations that the US Federal Reserve could start its long-awaited interest rate reduction cycle this month which may keep Malaysian equities steady heading into the new month.
Therefore, the key index could continue to build on its momentum and make further headway over the near-term, boosted by the improved sentiments on equities.
Still, with conditions already toppish and with the results reporting season coming to an end, the upsides could become more gradual with the 1,680-1,685 levels to become the immediate hurdle, followed by the 1,690-1,695 levels. On the downside, there is support at the 1,672 level, followed by the 1,658 level.
Malacca Securities Research
The local exchange ended on a positive note, supported by window dressing activities on the final day of August.
We observed a broad-based rebound following selling pressure linked to the yen carry trade incident in early August.
Meanwhile, the US stock markets closed broadly higher in anticipation of a US Fed interest rate cut in September after the core PCE (Personal Consumption Expenditures Price) index met expectations at 0.2%.
This week, investors will focus on the manufacturing and jobs data which should provide insights into the health of economic activities.
In the commodity markets, Brent crude trended lower, dipping just below the USS77/barrel level while gold prices remained around US$2,500/oz. Elsewhere, CPO (crude palm oil) prices continued their rebound, approaching the RM4,000/metric tonne mark.
The FBM KLCI index ended higher towards the 1,678 level. Also, the technical readings on the key index were positive with the MACD histogram forming another positive bar and the RSI trended above 50.
The resistance is envisaged around 1,693-1,698 while the support is set at 1,658-1,663. – Sept 2, 2024
