BELOW are excerpts of viewpoints from two selected research houses on what investors can expect in the day ahead:
Inter-Pacific Research
Bursa Malaysia stocks ended the week on a firm note, re-capturing the psychological 1,650 level in the process as light bargain hunting emerged to provide some relieve to the local equity market.
The recovery was also in line with regional market gains as investors anticipate the Federal Reserve to implement an interest rate cut this week. ]
The rebound was also broad-based with the lower liners registering decent gains albeit market interest remains relatively benign.
There should be further near-term gains as stocks on Bursa Malaysia plays catch-up to the upsides among key global indices during the Malaysia Day holiday.
This is likely to extend the FBM KLCI’s recovery as mild bargain hunting activities could still emerge to help tip it higher over the near-term.
The upsides could also be in tune with the recent gains among key global equity indices as the key index also looks to fortify its position above the 1,650 level.
However, buying interest may still be modest as many stocks are already fairly valued and there are also fewer leads as market players await for the US Federal Reserve’s interest rate action.
Therefore, the upsides could remain relatively modest with the immediate target set at the 1,653-1,660 levels, followed by the 1,662 level. The supports, meanwhile, are at 1,650 and 1,642 levels.
Malacca Securities Research
The FBMKLCI rebounded last week alongside broader market gains and small-cap stocks as sentiment improved following a recovery in crude oil prices.
In the US, Wall Street ended on a mixed note: the Dow reached record highs while the Nasdaq saw a slight decline as tech stocks lagged ahead of the upcoming Federal Open Market Committee (FOMC) meeting.
Traders appear to be pricing in a potential 50 basis points (bps) interest rate cut aimed at steering the economy towards a soft landing.
This week, traders will be focusing on the US retail sales while the buying momentum may extend on local front.
In the commodities market, Brent crude extended its recovery due to potential production cuts in the Gulf of Mexico while gold surged to a record high above US$2,580/oz as the market anticipates the rate cut this week. On the other hand, crude palm oil (CPO) closed lower, nearing RM3,800/metric tonne.
The FBM KLCI index closed higher towards the 1,652 level. However, the technical readings on the key index were mixed with the MACD histogram forming another negative bar but the RSI hooked above 50.
The resistance is envisaged around 1,667–1,672 while the support is set at 1,632–1,637. – Sept 17, 2024
