BELOW are excerpts of viewpoints from two selected research houses on what investors can expect in the day ahead:
Inter-Pacific Research
Malaysian equities mounted a firm rebound yesterday, climbing back above the 200-day moving average line to also close above the psychological 1,600 points level.
Much of the support was from local institutions on selected index-linked stocks to offset the sustained selling by foreign institutions.
In the broader market, conditions were still mixed albeit the FBM ACE and FBM Small Cap indices ended on a positive note with total losers still ahead of gainers.
Yesterday’s rebound was welcomed to restore the key index’s longer-term uptrend after it managed to climb back above the 200-day moving average at 1,595 points.
Despite this, market conditions are still uncertain, hampered by the lack of fresh catalysts and the corresponding low market interest that could still keep the market in check for longer.
For now, we think the key index could attempt to stay above the 1,595 level to prolong the overall positive trend amid continuing mild support from local institutional players.
Therefore, big upward moves could still be elusive for now due to the few impetuses, leaving the drifting trend intact.
On the upside, the hurdles are now at 1,610 points, followed by the 1,615 level. The psychological 1,600 level is the immediate support, followed by the 1,595 level.
Malacca Securities Research
The FBM KLCI closed above the 1,600-point level following arebound in PMETAL (Press Metal Aluminium Holdings Bhd) and we expect stronger sentiment going into the earnings season.
In the US, the market started off strong, buoyed by Tesla’s performance, as the Trump’s administration plans to make a federal framework for fully self-driving vehicles one of the Transportation Department’s priorities.
This week, traders will continue to monitor key events in the likes of (i) the speech by Bank of Japan (BOJ) governor; (ii) NVIDIA’s earnings release; (iii) G20 Summit; and (iv) China’s loan prime rate announcements.
In the commodities market, Brent crude edged closer to the US$73/barrel level amid escalating tensions in the Ukraine-Russia conflict while gold prices surged above the US$2,600/oz mark.
However, CPO (crude palm oil) prices traded below the RM5,000/metric tonne psychological level due to a slowdown in exports.
The FBM KLCI index rallied above the 1,600 level to close at 1604.04. However, the technical readings on the key index were still negative with the MACD Histogram closing downwards and the RSI trending below 50.
The resistance is envisaged around 1,619-1,624 while the support is set at 1,584-1,589. – Nov 19, 2024
