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 posted minute gains to end last week on a positive note as well as to break its streak of losses.
Despite the gains, however, market conditions were still tepid and unable to gain significant strength as it struggled to build up momentum.
This left market conditions mixed-to-lower with market breadth still on the negative side with traded volumes also relative unchanged from a day earlier. The lower liner indices also remained mixed due to the insipid conditions.
There is no change to the near-term market conditions as it will still struggle to find sufficient momentum for a sustainable rebound to climb back above the 200-day moving average line that would resume its uptrend.
As it is, there are still few market impetuses with most key index constituents remaining on a drifting mode amid the directionless environment.
At the same time, foreign funds are still reducing their exposure to Malaysian equities that could further leave stocks to be under selling pressure for longer.
For now, the key index could just be attempting to find some more near-term solace and to find stability around the 1,590 level.
There are resistances at the 1,593 level and around the 1,598 level which is the 200-day moving average line. The supports, meanwhile, are at the 1,585-1,588 levels, followed by the 1,576 level.
Malacca Securities Research
While the FBM KLCI was unable to sustain levels above 1,600, it managed to snap a three-day losing streak.
Meanwhile, Wall Street closed higher as investors continued to bet on “buy crypto and US dollar” following Donald Trump’s recent election victory.
Over the weekend, Trump nominated Scott Bessent to lead the Treasury, tasking him with implementing the administration’s pledges to cut taxes and raise tariffs.
This week, traders will shift their focus to key economic events, including: (i) the FOMC (Federal Open Market Committee) meeting minutes; (ii) US Core PCE (Personal Consumption Expenditures) data; (iii) US 3Q 2024 GDP (gross domestic product); and (iv) China’s Manufacturing PMI (Purchasing Managers Index).
In the commodities market, Brent crude climbed toward US$75/barrel while gold prices surged above US$2,700/oz amid rising geopolitical tensions. Conversely, CPO (crude palm oil) prices retreated below RM4,700/metric tonne.
The FBM KLCI index failed to close above the 1,600 level and is currently trading below all the MAs line. The technical readings were negative with the MACD Histogram closing in the negative territory while the RSI is trending below 50.
The resistance is envisaged around 1,604-1,609 while and the support is set at 1,569-1,574. – Nov 25, 2024
