BELOW are excerpts of viewpoints from two selected research houses on what investors can expect in the day ahead:
Inter-Pacific Research
Although the FBM KLCI was in the negative territory for much of the day, it managed to end on a positive note, boosted by an end-of-day lift on selected index-linked stocks to preserve its upward trend.
Nevertheless, the overall market undertone was relatively tepid with few impetuses for participants to follow.
As a result, the broader market faltered again, leaving losers to overwhelm gainers nearly on 2-to-1 ratio amid profit taking on some of the recent big movers.
As the euphoria over the US Federal Reserve’s interest rate cut and China’s stimulus measures fade, sentiments on Bursa Malaysia are left to drift once again with the inability to find further traction with most market players on the sidelines due to the FBM KLCI’s already fair valuations.
As it is, further evidence of improvements in corporate earnings are needed for the key index to extend its gains.
Therefore, this could mean the key index may continue on a largely range-bound trend as it awaits for more impetuses to emerge.
Nevertheless, there is also little selling pressure as the firmer market fundamentals should provide ample support for now. The immediate resistances remain at 1,675 points, followed by the 1,680 level. The supports, meanwhile, are at 1,670 and 1,665 points respectively.
Malacca Securities Research
The FBM KLCI edged higher while investors continued reducing exposure in small-cap stocks.
With the ringgit strengthening, Malaysia’s position as an export-driven nation may face pressure.
In the US, Wall Street ended mixed, breaking a four-day rally as traders re-assessed last week’s 50 bps (basis points) Fed rate cut and took profits amid a lack of new catalysts.
Investors are now focused on upcoming economic data where the non-farm payroll will be due next week.
In the commodities market, Brent crude fell below US$74/barrel due to positive developments in Libya. Gold prices surged toward US$2,660/oz while crude palm oil (CPO) was traded positively towards RM4,100/metric tonne following China’s stimulus announcements.
The FBM KLCI index closed higher towards the 1,673 level. Also, the technical readings on the key index were positive with the MACD histogram extended another positive histogram and the RSI stayed above 50.
The resistance is envisaged around 1,693-1,698 while the support is set at 1,653-1,658. – Sept 26, 2024
