BELOW are excerpts of viewpoints from two selected research houses on what investors can expect in the day ahead:
Inter-Pacific Research
Stocks remained on the slide at the start of the week on Bursa Malaysia despite attempts to shore up the key index for much of the day.
Nevertheless, the day’s losses were relatively benign as the selling pressure on the index heavyweights eased even as concerns over the state of the global economy continues to weigh on sentiments.
The weak sentiments also affected the broader market shares as selling was sustained with traded volumes picking up some 44% and losers doubled the gainers for the day.
After its streak of losses, the key index would be looking to end its downtrend and mount a recovery in the near-term.
This comes as the FBM KLCI looks to be finding support around the 1,650 level over the past two sessions with this level likely to serve as a major support.
At the same time, selling activity also seems to be waning among the key index stocks which could help it find some measure of stability.
The rebound among key global equity indices overnight could provide some inklings for the key index to also find some stability albeit there are still few domestic leads following the end of the results reporting season.
With still few leads, the recovery could still be meek at this juncture with the immediate target set at the 1,660-1,662 levels, followed by the 1,670 level. If the 1,650 level gives way, the ensuing supports are at the 1,645 and 1,640 levels respectively
Malacca Securities Research
The FBM KLCI ended slightly lower as selling pressure continued on YTL-related stocks. The small-cap index also declined for another session though it remains near its trendline.
In the US, stocks rebounded as investors speculated that the US Federal Reserve’s expected rate cut this month could stimulate the slowing economy, leading to bargain hunting in technology stocks.
This week, markets will be focused on two key inflation data releases with the CPI (consumer price index) on Wednesday and the PPI (producer price index) on Thursday.
In the commodity markets, Brent crude saw a mild rebound as traders bought the dip amid hurricane warnings that could threaten the US Gulf Coast. Meanwhile, gold prices stabilised around US$2,500/oz with traders awaiting the Fed’s rate cut and crude palm oil (CPO) prices hovered just below RM3,900/metric tonne.
The FBM KLCI index ended lower towards the 1,651 level. However, the technical readings on the key index were mixed with the MACD histogram forming another negative histogram bar but the RSI trended above 50.
The resistance is envisaged around 1,666-1,671 while the support is set at 1,631-1,636. – Sept 10, 2024
