BELOW are excerpts of viewpoints from two selected research houses on what investors can expect in the day ahead:
Inter-Pacific Research
The key index continues to head south as fears of a more pronounced slowdown in the US economy that affected sentiments albeit it managed to hold on to the 1,670 level at the close.
Market conditions were insipid for the most part and the FBM KLCI mirrored the performance of many global equity indices to end lower.
Selling was also pronounced in the broader market with the FBM Small Cap and FBM ACE indices on the backfoot again. As a result, losers dominated trades by a wide margin.
With market sentiments still dour, the FBM KLCI’s downside bias is likely to persist for the time being as more market players retreat to the sidelines while awaiting for stability to emerge.
There remain few noteworthy leads for market players to follow with the weak global economic data to still dictate the market’s movements.
Despite the on-going pullback, the key index also remains toppish and this could prevent a more meaningful recovery for now.
However, there are also pockets of support and this may keep the downsides relatively benign with the 1,665 level to provide some measure of support.
Below that, the other supports are at the 1,658-1,660 levels. On the flipside, the immediate resistance is at 1,675 points, followed by the 1,680 level.
Malacca Securities Research
Overall, sentiment on the local front ended on a negative note with broad-based sell-offs following a weak start in the US stock markets. However, foreign funds remained net buyers on the Bursa exchange.
Meanwhile, Wall Street began September on a weaker footing with the S&P and Nasdaq experiencing consecutive declines which were driven by amplified selling in the technology sector after softer JOLTS openings and ISM Manufacturing PMI (Purchasing Managers’ Index) data.
Traders will be closely watching the unemployment claims data later tonight and the non-farm payroll report due on Friday.
In the commodity markets, Brent crude extended its decline due to weaker economic growth in China while on the supply side, OPEC may increase production in 4Q 2024. Gold prices continued trading around the US$2,500/oz level while CPO (crude palm oil) prices fell below RM3,900/metric tonne.
The FBM KLCI index ended lower towards the 1,670 level. However, 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 1,685-1,690 while the support is set at 1,655-1,650. – Sept 5, 2024
