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 sustained its recovery for a third day but surrendered most of its intraday gains to settle with just minor gains at the close.
Much of the activities, however, were in the broader market as the lower liner indices tipped higher on the return of mild buying interest.
Nevertheless, these indices also surrendered most of their intraday gains on quick profit taking actions as traded volumes picked up to above 3 billion shares while market breadth turned positive for the day.
Near-term market conditions are likely to remain mildly positive as the key index attempts to solidify its position above the 200-day moving average line and psychological level of 1,600 points.
There also appears to be continuing mild bargain hunting that could provide support to the market.
However, the upsides could also stay relatively modest as market players continue to monitor the spate of corporate results ahead of the month-end deadline.
At the same time, foreign institution’s interest on Bursa Malaysia stocks is still tepid, particularly among foreign institutions, thereby limiting the upside potential with the FBM KLCI’s immediate targets staying at 1,608-1,612 levels, followed by the 1,620 levels.
The supports, meanwhile, are at the 1,600 and 1,595 levels respectively.
Malacca Securities Research
The FBM KLCI ended positively following the strong rebound in YTL-related counters.
However, Wall Street closed lower ahead of the Thanksgiving holiday with core PCE (Personal Consumption Expenditures) data climbing 2.8% year-on-year (yoy) from October last year which may affect the US Federal Reserve’s rate cut decision in the upcoming FOMC meeting as inflation remains sticky with a healthy labour market.
This week, traders will monitor key economic events, including (i) Eurozone CPI (Consumer Pric Index); (ii) Chicago PMI (Purchasing Managers Index); and (iii) China’s Manufacturing PMI.
In the commodities market, Brent crude steadied around the US$72/barrel level as OPEC+ considered re-starting production cuts of 2.2 million bpd. Meanwhile, gold prices remained below the US$2,700/oz level while CPO (crude palm oil) prices rebounded above the RM4,700/metric tonne level.
Bitcoin stayed elevated, breaking above the US$95,000 level and approaching the US$100,000 psychological mark.
Despite gaining traction above the 1,600 psychological level, the FBM KLCI is still trading below the MAs line. The MACD Histogram has turned positive but the RSI is still trending below 50, indicating that the momentum is slightly weaker.
The resistance is envisaged around 1,619-1,624 while the support is set at 1,584-1,589. – Nov 28, 2024
