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 slid further yesterday, nudging closer to the psychological 1,600 level at the close due to a sell-down of hospital operators like Sunway Bhd and IHH Healthcare Bhd as the government plans to regulate the pricing of medical services.
At the same time, leads were also far and in-between, leaving traded volumes to whittle below 2 billion shares for the day. Trades among the lower liners were also subdued to leave overall market breadth in the negative territory.
Near-term market conditions remain directionless which could point to more weakness ahead as more market players retreat to the sidelines, adopting a wait-and-see stance.
As it is, local players are just providing some mild buying support to cushion against the sustained selling by foreign funds.
The lack of leads is also sending more market players to the sidelines which is likely to remain a feature over the near term as the Malaysian equity market continues to decouple from the direction of global equities.
Therefore, the FBM KLCI is set for further consolidation with the 1,600 level again under threat after the key index slipped below the 200-day moving average line yesterday. If the 1,600 level is breached, the ensuing support is at 1,595 points.
On the flipside, the resistances are at the 1,607-1,610 levels, followed by the 1,615-1,617 levels.
Malacca Securities Research
The FBM KLCI trended lower for the fourth consecutive day with healthcare sector declining the most.
In contrast, both the S&P500 and Nasdaq ended higher as the November CPI (Consumer Price Index) data came in within expectations while traders now anticipating further rate cut in next week’s Federal Open Market Committee (FOMC) meeting.
Other key economic events to be monitored this week include (i) US unemployment claims; (ii) European Central Bank (ECB) rate decision; and (iii) Eurozone industrial production data.
In the commodities market, Brent crude rose above the US$73/barrel level as the Biden administration considers imposing new sanctions on Russia’s oil industry.
Elsewhere, gold prices have surged above the US$2,700/oz level, influenced by the recent inflation data release while CPO (crude palm oil) prices remain below RM5,000/metric tonne as the momentum has paused after the sharp recent pullback.
The FBM KLCI further retreated after hitting the 60-day moving average line. Although the MACD Histogram expanded positively, the RSI stayed below 50, indicating that the momentum is mixed at this juncture.
Resistance is envisaged around 1,618-1,623 while support is set at 1,583-1,588. – Dec 12, 2024
