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 ended lower last Friday as it surrendered its intraday gains at the close of the week.
However, the key index managed to stay above the 1,620 level with much of the weakness due to the sustained foreign selling of Malaysian equities.
The broader market was also a sea of red in the absence of fresh leads that left most stocks to drift with total losers almost double the number of gainers for the day. Traded volumes also dwindled by nearly 30% amid the low investor appetite.
Insipid domestic market conditions could again leave the key index to drift further with market players casting aside the positivity and record closing on Wall Street following the US presidential election and the US Federal Reserve’s interest rate cut.
As it is, foreign funds have been trimming their positions on Bursa Malaysia stocks in favour of US and regional equities of late with this trend unlikely to reverse anytime soon, hence would leave FBM KLCI listed stocks directionless for longer.
This also means that the 1,620 level could be breached again due to the low market interest with the next supports are pegged at 1,616-1,618 levels, followed by the 1,607 level. On the flipside, the resistances are set at 1,627 points and 1,634 points respectively.
Malacca Securities Research
Last Friday, the Malaysian ringgit strengthened slightly as the Federal Open Market Committee (FOMC) meeting concluded with a 25 basis points (bps) rate cut while the FBM KLCI ended softer.
Meanwhile, Wall Street closed on a positive note, reaching new highs after Donald Trump’s second presidential win.
Looking ahead, traders will closely monitor inflation and retail sales data which could dictate the outcome in upcoming FOMC meetings; the probability of a 25bps cut in the December FOMC has risen to 84.9% (from 64.9%).
In the commodity markets, Brent oil fell below US$73/barrel as fears of prolonged supply disruptions from a hurricane in the US Gulf of Mexico eased. Meanwhile, gold prices retreated to around US$2,684/oz but CPO (crude palm oil) surged above the RM5,100/metric tonne level.
The FBM KLCI index closed lower towards the 1,621 level. However, the technical readings on the key index were mixed with the MACD histogram formed positive bars but the RSI trended below 50.
The resistance is envisaged around 1,636-1,641 while the support is set at 1,601-1,606. – Nov 11, 2024
