BELOW are excerpts of viewpoints from two selected research houses on what investors can expect in the day ahead:
Inter-Pacific Research
The key index managed to eke-out minor gains yesterday to extend its positive close for another session.
Much of the gains on the FBM KLCI were from the rebound in YTL-related stocks after the MACC (Malaysian Anti-Corruption Commission) cleared the group of any wrongdoings.
However, overall market conditions stayed tepid after the US Federal Reserve indicated fewer rate cuts in 2025, sending most broader market shares lower and leaving market breadth decidedly negative. Traded volumes, meanwhile, rose to 3.2 billion shares.
We still see market conditions staying insipid heading into the final weeks of 2024 as there are few positive market vibes to lift investor sentiments.
As such, we also see the drifting trend persisting as buying support from local institutions will enable the key index to remain close to the psychological 1,600 level.
Meanwhile, the indication of slower or reduced interest rate cuts in 2025 could leave sentiments wary as economic conditions are still largely mixed and are still subjected to significant headwinds.
The continuing foreign selling is also keeping sentiments on Bursa Malaysia on the defensive for longer.
With the drifting trend staying put, we see the key index lingering within a tight range around the 1,590 and 1,605 levels for now. The immediate support is at 1,595, while the other resistance is at 1,610 points.
Malacca Securities Research
The local bourse eked out marginal gains, closing at the key 1,600 psychological level.
In the US, there is growing concerns on inflationary pressures driven by the expected higher tariffs imposed under the Trump administration which could result in a slower easing cycle by the US Federal Reserve next year.
We believe the overall tone on the stock markets will remain volatile until Trump’s inauguration in January 2025. Meanwhile, the Core PCE Price Index data is set to be released later today.
In the commodities market, Brent crude continued to retreat, hovering around US$72/ barrel as the stronger greenback limited its upside potential.
Gold prices remained flat below the US$2,600/oz mark while crude palm oil (CPO) prices declined for another session to trade below the RM4,500/metric tonne level.
The FBM KLCI has gained momentum by closing above key 1,600 psychological level. However, as the MACD histogram has formed a new negative bar and the RSI has trended below 50, this suggests that the momentum is negative at the current juncture.
Resistance is anticipated around 1,615-1,620 while support is set at 1,580-1,585. – Dec 20, 2024
