BELOW are excerpts of viewpoints from two selected research houses on what investors can expect in the day ahead:
Inter-Pacific Research
Malaysian equities were mixed at the start of the week as the index heavyweights were largely sideways albeit the broader market shares retained their recovery mode.
There were fewer impetuses following the end of the results reporting season with many FBM KLCI constituents were left to drift, even as they managed to recoup most of their intraday losses.
Market breadth also remained positive but traded volumes slipped due to reduced market following.
Near-term market conditions are likely to remain indifferent amid the fewer immediate leads to lift the market higher with market players also awaiting for more developments on US interest rates for cues.
At the same time, the FBM KLCI remains toppish after its strong run-up over the past few weeks with valuations already within its historical forward averages.
As such, the key index could continue to dither amid the lack of readily available leads but it could also be building up a base around the 1,650 and 1,680 levels.
A firmer base could be vital to provide the key index a springboard to potentially head higher towards the end of the year, particularly when there are more signs of the country’s economic undertone strengthening further.
In the meantime, there is an interim support at 1,672 points while the ensuing resistance is at 1,685 level.
Malacca Securities Research
The local market ended on a mixed note with the FBM KLCI closing slightly lower while the attention has shifted to small caps and lower liners.
Meanwhile, the US stock markets were closed for a public holiday. With flat performances in European markets and several key economic data releases such as ISM Manufacturing and jobs data due this week, traders may remain cautious in the near term.
Currently, the market expects a 25 basis points (bps) rate cut in the forthcoming FOMC (Federal Open Market Committee) meeting.
In the commodity markets, Brent crude rebounded as oil exports at Libyan ports were halted on Monday (Sept 2) with production reduced across the country. Gold prices continue to trade sideways around the US$2,500/oz mark while CPO (crude palm oil) prices remain above the RM 3,900/metric tonne level.
The FBM KLCI index ended flat at the 1,678 level. However, technical readings on the key index were positive with the MACD histogram forming another positive bar and the RSI trended above 50.
The resistance is envisaged around 1,693-1,698 while the support is set at 1,658-1,663. – Sept 3, 2024
