BELOW are excerpts of viewpoints from two selected research houses on what investors can expect in the day ahead:
Inter-Pacific Research
Malaysian stocks lost further ground at the start of the week as there remains few impetuses for market players to follow.
An escalation in foreign institutional selling has also left the FBM KLCI firmly on the downtrend after China’s announced less-than-exciting stimulus measures that left few leads for market players to follow.
The selling also persisted among the lower liners resulting in losers again dominating gainers for the day.
There is no change to the near-term market conditions with the weakness spell likely to continue for the time being.
Fresh buying impetuses remain few and in-between thereby causing most market players to stay on the sidelines and could now be awaiting the upcoming 3Q 2024 GDP (gross domestic product) announcement for leads.
Although Wall Street continues to chalk new record closings, the positivity is unlikely to permeate to Malaysian equities as foreign funds are still switching out of local stocks.
The sustained weakness could again place the 200-day moving average line around 1,595 points at risk and if the line is breached, the uptrend could end.
In the interim, there are supports at 1,604 points and 1,600 points while the resistances are pegged at 1,615 and 1,620 points respectively.
Malacca Securities Research
The FBM KLCI began the week on a softer note amid a lack of fresh catalysts environment while selected weaker corporate earnings contributed to the selling pressure on the local bourse.
The US stock market, however, advanced further on the back of Donald Trump’s victory in the US presidential election.
This week, market participants will focus on key economic indicators, including: (i) consumer price index (CPI); (ii) producer price index (PPI); (iii) retail sales and core retail sales; and (iv) Malaysia’s 3Q 2024 GDP data.
In the commodities market, Brent crude fell to US$71/barrel as investors digested China’s latest stimulus plan. Meanwhile, gold prices retreated further to US$2,619/oz but crude palm oil (CPO) prices continued to surge by closing above the RM5,100/metric tonne level.
The FBM KLCI index closed lower towards the 1,609 level. Meanwhile, the technical readings on the key index were mixed with the MACD histogram having formed another positive bar while the RSI trended below 50.
The resistance is envisaged around 1,624-1,629 while and the support is set at 1,589-1,594. – Nov 12, 2024
