BELOW are excerpts of viewpoints from two selected research houses on what investors can expect in the day ahead:
Inter-Pacific Research
Once again, the FBM KLCI went nowhere as conditions remained insipid that resulted in it ending the day with minute losses.
For most of the day, the key index trended within a tight range amid the directionless trading environment.
In the broader market, however, conditions were slightly more positive as total gainers managed to pip total losers for the day, hence enabling many Bursa sector indices to end the day with gains. Traded volumes also picked up some 21% from a day earlier.
We maintain our view that the directionless trading environment will continue to dominate trades and leaving the key index to drift for longer.
As it is, fresh buying interest remains thin due to the lack of catalyst with strong speculation that the US Federal Reserve’s next interest rate decision may see interest rates stand pat after the deeper-than-expected cut in September.
Furthermore, there are also few leads from the recently unveiled Malaysian Budget 2025 that could result in more market players choosing to remain on the sidelines.
Nevertheless, the selling pressure is also light and this should still allow the 1,640 level to be preserved for the time being with the ensuing support pegged at 1,635 points. On the upside, the psychological 1,650 level is the ensuing resistance, followed by the 1,655 level.
Malacca Securities Research
The FBM KLCI declined for the third consecutive day while the FBM Small Cap index rebounded.
In the US, market sentiment turned negative with all major indices closing in the red as uncertainties surrounding the upcoming US elections intensified.
Also, US home sales fell short of expectations while Treasury yields rose to a three-month high with the market now pricing in an 89% probability of a 25bps rate cut at the upcoming Federal Open Market Committee (FOMC) meeting.
In the commodities market, Brent crude dipped slightly after US crude inventories rose more than anticipated despite a rebound in refining activity.
Meanwhile, gold prices pulled back but remained above the US$2,700/oz mark. Crude palm oil (CPO) prices edged closer to RM4,500/metric tonne, signalling a potential upward rally.
The FBM KLCI index ended lower towards the 1,641 level. The technical readings on the key index were mixed with the MACD histogram extended another positive histogram but the RSI trended below 50.
The resistance is envisaged around 1,656-1,661 while the support is set at 1,621-1,626. – Oct 24, 2024
