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 mounted a mild rebound yesterday as it pared intraday losses on late buying support on selected index-linked stocks like Tenaga Nasional Bhd and Maxis Bhd.
In the process, the key index also bucked the regional market’s mostly weaker conditions due to lack of fresh leads.
The broader market was mixed but many sector indices ended the day mildly higher albeit market breadth was still negative for the day. However, there was little change to the transacted volumes which stayed below 3 billion shares.
We continue to see near-term market conditions remaining mostly insipid, undermined by the lack of catalysts that would leave market players to stay on the sidelines for longer.
The country’s 3Q 2024 GDP (gross domestic product) to be unveiled tomorrow (Nov 15) is also unlikely to provide much impetus as it should be near the advance estimate of around 5.3% year-on-year (yoy) which is slower than the 5.9% yoy growth attained in 2Q 2024.
Nevertheless, the key index could stay range-bound over the near-term as it attempts to find some footing following the recent weakness that has left it near the crucial 200-day moving average line.
In the meantime, there should be support at the 1,610 and the 1,600-1,603 levels while the resistances are set at 1,615 and 1,620 levels respectively
Malacca Securities Research
The FBM KLCI rebounded, buoyed by renewed interest in utilities and industrial stocks, the latter surged due as Solarvest Holdings Bhd having received approval to operate as a merchant generator in Kedah which spurred buying support in the sector.
Meanwhile, US inflation data came in within expectations with the CPI (consumer price index) and Core CPI rising to 2.6% and 3.3% yoy respectively.
As a result, Wall Street closed on a mixed note; the Dow advanced while both the S&P 500 and Nasdaq ended flat.
This week, traders will be closely watching (i) PPI (Producer Price Index); (ii) retail sales; and (iii) Malaysia’s 3Q 2024 Malaysia GDP data.
In the commodities market, Brent crude traded flat following OPEC+’s reduced demand forecast.
Gold prices retreated further to U$2,573/oz as the US dollar gained momentum while CPO (crude palm oil) price fell significantly below RM4,800/metric tonne as a slowdown in exports weighed on vegetable oil prices.
The FBM KLCI index closed higher towards the 1,611 level. However, the technical readings on the key index were mixed with the MACD histogram having formed another positive bar and the RSI trended below 50.
The resistance is envisaged around 1,626-1,631 while the support is set at 1,591-1,596. – Nov 14, 2024
