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 rebound for a second successive day, marking a strong start to the final month of the year in what could be seen as early window dressing activities.
Much of the upsides were again from local funds supporting some of the beaten down key index constituents to offset the selling from foreign funds.
In the same vein, many broader market shares also pushed higher with increased market participation that also allowed market breadth to stay distinctively positive.
There appears to be a reversal in the market’s undertone as it now looks to end its extended downtrend with the fresh buying support from domestic funds.
However, there remains little change to Bursa Malaysia’s fundamentals, hence the recent buying could still be just window dressing activities.
Even so, the recent gains are encouraging as it allowed the key index to climb back above the crucial 200-day moving average line that would preserve the overall positive trend on the FBM KLCI.
With the near-term conditions still positive, there could be further upsides as the key index now attempts to firm up its position above the 1,610 support with domestic market players to continue with their buying support.
The immediate targets are at the 1,615-1,617 points, followed by the 1,621 level. The supports, meanwhile, are at 1,610 points and 1,605 points respectively.
Malacca Securities Research
In anticipation of the FBM KLCI commitments’ review, the key index extended its gains, closing at 1,614.
Gamuda Bhd and 99 Speed Mart Retail Holdings Bhd are on the preliminary addition list for the FBM KLCI while Genting Bhd and Genting Malaysia Bhd are slated for removal.
Meanwhile, Wall Street ended on a positive note with the Dow rebounding, and the S&P 500 and Nasdaq reaching record highs.
Gains in technology stocks drove the rally as traders priced in another potential rate cut following softer ADP Non-Farm Employment Change and ISM Services PMI (Purchasing Managers’ Index) data.
Other key economic indicators to watch this week include (i) unemployment claims;and (ii) non-farm payrolls.
In the commodities market, Brent crude slipped ahead of the OPEC+ meeting while gold prices were marginally higher following weaker US economic data and geopolitical tensions in South Korea.
Elsewhere, CPO (crude palm oil) prices also gained momentum by closing above the RM5,000/metric tonne level.
The FBM KLCI closed higher at the 1,614 level. Meanwhile, the MACD histogram formed another positive bar and the RSI hooked above 50, indicating a positive momentum at this juncture.
Resistance is envisaged around 1,629-1,634 while the support is set at 1,594-1,599. – Dec 5, 2024
