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 continues to lose ground, shedding another 3.2 points to end last week on a dour note despite posting decent intraday gains.
As it is, market conditions remained subdued on muted response to the spate of corporate results as well as the lack of fresh buying impetus with foreign funds still disposing local equities.
The broader market was also largely subdued with losing stocks still slightly ahead of gaining ones. However, traded volumes improved by nearly a quarter to over 3 billion shares.
As things stand, there could be little change to the near-term market outlook with conditions likely to remain subdued, hampered by the lack of leads heading into the last month of the year.
The continuing threat of escalating trade war when President-elect Trump assumes office next month coupled with the sustained foreign selling is leaving sentiments among FBM KLCI listed stocks on the defensive for the time being while the insipid market conditions are likely to remain in place for longer.
At the same time, market participation is likely to become sparser in the following weeks ahead of the year-end holidays, resulting in the key index becoming quieter.
As a result, we see the key index continuing to drift over the near-term with the 1,590-level becoming the next support, followed by the 1,585 level. On the upside, the immediate resistances are at 1,595-1,600 levels, followed by the 1,605 level.
Malacca Securities Research
While the FBM KLCI retreated below the 1,600 level, we believe a rebound could emerge as we enter the window dressing period.
Meanwhile, the US markets bounced back and closed higher, driven by gains in technology and retail stocks as the holiday season kicked off.
Looking ahead, traders will monitor key economic indicators, including the (i) ISM PMI (Purchasing Managers’ Index) data; (ii) labour market updates (JOLTS, ADP employment, unemployment rate and non-farm payrolls); and (iii) weekly unemployment claims.
In the commodities market, Brent crude traded flat around US$72/barrel while gold prices rebounded above US$2,600/oz as the greenback weakened on expectations of December rate cuts and heightened geopolitical tensions.
However, crude palm oil (CPO) prices surged above the RM5,000/metric tonne level while Bitcoin remained elevated, breaking above the US$97,000 mark and approaching the US$100,000 level.
The FBM KLCI is hovering below the 1,594 level and all the MA (moving average) lines. The MACD Histogram, however, has turned positive but the RSI is still trending below 50, indicating that the momentum is mixed at this juncture.
The resistance is envisaged around 1,609-1,614 while the support is set at 1,574-1,579. – Dec 2, 2024
