BELOW are excerpts of viewpoints from two selected research houses on what investors can expect in the day ahead:
Inter-Pacific Research
Bursa Malaysia’s weakness continued into the end of last week with the key index slipping below the 1,620 level as selling pressure escalated, particularly from foreign funds as they also remained net sellers.
This saw the week’s loss escalating to 1.6% with the lack of leads from Budget 2025 hampering market sentiments.
At the same time, most lower liners were also in the red with losers again overwhelming gainers. Traded volumes slipped further to remain below 3 billion shares.
The persistent selling on some of the key index constituents are leaving a bearish undertone on market sentiments with participants also becoming increasing wary of its near-term performance after the successive support levels were breached.
As a result, the uncertain market outlook is likely to prevail for now, leaving the market to potentially continue with its drifting trend.
Fresh buying interest continues to thin due to lack of domestic impetuses, coupled with the lingering uncertainties over the next US interest rate decision as well as China’s still weak economic undertone that could also weigh on sentiments for longer.
Consequently, the key index has yet to find support following the termination of its base-building efforts with the next support now set at 1,610 level, followed by the 1,605 level. The resistances, on the other hand, are at 1,620 points and 1,625 points respectively.
Malacca Securities Research
Market sentiment weakened last week on the local exchange with increased selling in YTL-related stocks while the FBM Small Cap index continued to decline.
In the US, sentiment was mixed as traders evaluated a range of corporate earnings and economic data.
US durable goods orders fell in September yet consumer sentiment climbed to its highest level since April; the Dow and S&P 500 retreated from their record highs while the Nasdaq saw a rebound.
In the commodities market, Brent crude rebounded close to US$76/barrel but is likely to retrace as Middle East tensions eased. Gold prices rallied towards an all-time high zone while CPO prices continued to hold above the RM4,500/metric tonne mark.
The FBM KLCI index ended lower towards the 1,618 level. The technical readings on the key index could be turning negative with the MACD histogram showing a rounding top formation and the RSI having trended below 50.
The resistance is envisaged around 1,633-1,638 while the support is set at 1,598-1,603. – Oct 28, 2024
