BELOW are excerpts of viewpoints from two selected research houses on what investors can expect in the day ahead:
Inter-Pacific Research
Stocks on Bursa Malaysia were mostly lower at the start of the week due to few available leads from Budget 2025’s tabling last Friday. This left the FBM KLCI to drift again as fresh buying interest was still lacking.
However, there were still bouts of buying support that kept it virtually unchanged at the close but selling was more apparent among lower liners causing total losers to still overwhelm gaining stocks. Volumes picked up by some 20% with total trades topping 3 billion shares.
With few available leads, both from domestic and foreign sources, the FBM KLCI’s drifting trend is likely to persist.
Market players would now be looking to the US Federal Reserve’s interest rate decision next month that could extend the key index’s YTD (year-to-date) gains if there are further cuts.
In addition, next month’s corporate results reporting will also be keenly watched to provide further clues on the state of the Malaysian economy.
In the interim, the key index could continue to trend within the 1,640 and 1,650 levels in what is seen as base building.
Its efforts could be helped by the return of foreign funds that have turned net buyers of late, pivoting from Greater China equities after their strong recent run-up. Below the 1,640 level, the supports are at 1,634 and 1,630 points while above 1,650, the resistance is at 1,655 points.
Malacca Securities Research
The Bursa exchange ended mildly lower on the first trading day after last Friday’s tabbing of Budget 2025.
Meanwhile, the Dow and S&P 500 retreated from their record-high closings as investors await more US earnings releases.
Looking ahead, we expect the market to remain cautious as major companies like Tesla, Coca-Cola, T-Mobile US and GE Aerospace will be releasing their results this week.
Also, traders will closely monitor key economic data, including (i) US unemployment claims. (ii) flash manufacturing and services PMI; (iii) durable goods orders; and (iv) consumer sentiment. Besides, the BRICS summit will take place over the next three days.
In the commodities market, Brent crude rebounded after a seven-day losing streak, driven by China’s rate cut which may boost demand.
The FBM KLCI index rebounded towards the 1,645 level. Meanwhile, the technical readings on the key index are improving with the MACD histogram extended another positive histogram and the RSI has hooked above 50.
The resistance is envisaged around 1,660-1,665 while the support is set at 1,625-1,630. – Oct 22, 2024
