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 ended 2024 on a firm note, gaining nearly five points on the last trading day of the year.
There were sustained buying on selected index-linked stocks that enabled the key index to overcome the intraday profit taking in the morning session.
Many broader market indices also made further headway to end the year positively but market breadth was slightly negative for the day. At the same time, traded volumes were relatively thin at less than 2.5 billion shares traded.
After making a surge in the final weeks of the year, market conditions are already seen as overbought with a pullback already in the offing.
Although there are still few signs of an imminent pullback, we think that profit taking activities could dominate trades at the start of the year as there is little change to Bursa Malaysia’s fundamentals.
As such, market conditions could become more challenging over the near-to-medium term amid the lingering headwinds.
A pullback is also welcomed for the key index to take a breather from the recent gains but we think any selling could be mild for the time being.
On the downside, the supports are pegged at around the 1,635-1,640 levels, followed by the 1,630 level. The immediate hurdles at the 1,647-1,650 levels with the ensuing resistance set at 1,655 level.
Malacca Securities Research
The local bourse traded positively, extending its six-day winning streak on the final trading day of 2024, driven by a surge in buying interest during the second session.
However, the Nasdaq continued to weigh on Wall Street sentiment as losses persisted following the US Federal Reserve’s move to temper expectations of imminent rate cuts.
Traders will also keep track of key economic data, including US unemployment claims and the ISM Manufacturing PMI (Purchasing Managers’ Index).
In the commodities market, buying interest was seen in Brent crude hovering above US$74/barrel after data showed China’s manufacturing activity expanded in December. Gold price traded sideways along US$2,620/oz while CPO (crude palm oil) prices retreated below RM4,500/metric tonne mark.
The FBM KLCI extended its gains after breaking above the EMA60. The MACD histogram is positive with the RSI having crossed above 50, indicating positive momentum at the current juncture.
Resistance is anticipated around 1,657-1,662 while support is set at 1,622-1,627. – Jan 2, 2025
