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 retreated once again yesterday by falling in tandem with the regional equity indices amid a pullback in technology related stocks.
This saw the key index breaching the 1,640 level and fall back to the 1,630 level before ending the day a tad higher above its intraday low.
Market interest also remained low among the broader market shares, resulting in total losers more-than-double the number of gainers amid the persistent selling.
There is no change to our view with the near-term market conditions to remain lacklustre due to the prevailing wait-and-see stance adopted by most market participations.
As a result, the key index is likely to remain range-bound within the 1,630 and 1,640 levels for the time being with the unveiling of Budget 2025 tomorrow (Oct 18) to provide some leads to the market.
In the interim, the mostly insipid environment will continue to dominate sentiments and leave the market to dither albeit there could be some mild upsides after key global indices posted decent overnight gains.
Even so, any recovery will be modest due to the lack of buying impetuses. Apart from the above levels, the other support and resistance levels remain at 1,625 and 1,645 points respectively.
Malacca Securities Research
The FBM KLCI traded on a softer note throughout the session ahead of Budget 2025. However, some portfolio re-balancing was observed during the final hour of trading.
After a sharp decline due to ASML’s weaker outlook, Wall; Street rebounded, buoyed by stronger-than-expected earnings from Morgan Stanley which prompted the Dow to close at an all-time high with sectors such as financials, utilities, materials and industrials posting record highs.
Looking ahead, traders will closely monitor AI (artificial intelligence)-related stocks to assess their earnings growth.
In the commodity markets, Brent crude extended its pullback, driven by concerns over China’s demand and easing tensions in the Middle East.
Meanwhile, gold prices surged past US$2,670/oz while CPO (crude palm oil) prices continued to range between RM4,250-RM4,300/metric tonne.
The FBM KLCI index closed lower at the 1,632.63 level. Meanwhile, the technical readings on the key index are improving with the MACD histogram having turned positive but the RSI is still below 50.
The resistance is envisaged around 1,647-1,652 while the support is set at 1,612-1,617. – Oct 17, 2024
