BELOW are excerpts of viewpoints from two selected research houses on what investors can expect in the day ahead:
Inter-Pacific Research
Although the FBM KLCI posted minute gains to start the week, it was mostly lacklustre as it pared most of its intraday gains.
Leads were still far and in-between to encourage increased trades among stocks on Bursa Malaysia, leaving the insipid conditions intact.
This also saw total trades continuing to slow with less than 3 billion shares traded for the day. Concurrently, most broader market shares were also lower due to the prevailing low buying interest.
Near-term market conditions are likely to stay on a low gear due to the persistent selling by foreign funds that are also preventing a firmer upside among the key index constituents.
As it is, much of the buying is from domestic funds which are helping to support the key index to stay above the 1,590 level for the time being.
With little change to the buying dynamics as foreign funds are still likely to continue with the switch to other equity markets, the FBM KLCI drifting trend would also prevail for now.
This could also see the key index attempting to find some footing around the 1,590 and 1,600 levels over the near term. Besides the 1,590 support, the other support is at 1,585 points while the resistances above the 1,600 level is pegged at 1,605 points.
Malacca Securities Research
The FBM KLCI began the week on a soft note as healthcare stocks were sold off. However, we believe upward momentum could emerge during the window-dressing period.
Meanwhile, the US markets were traded mostly higher with the S&P500 and Nasdaq briefly hitting record highs buoyed by gains in the Magnificent-7 while traders are pricing in another December rate cut.
The ISM PMI (Purchasing Managers’ Index) data showed that activity improved with orders growing for the first time in eight months.
Moving forward, traders will monitor key economic indicators, including (i) labour market updates (JOLTS, ADP employment, unemployment rate and non-farm payrolls); and (ii) weekly unemployment claims.
In the commodities market, Brent crude and gold prices traded flat around US$71-US$72/barrel and US$2,638/oz respectively while CPO (crude palm oil) prices retreated marginally below the RM 5,000/metric tonne mark.
The FBM KLCI is hovering below the 1,595 level and all the moving average lines. The MACD Histogram, however has turned positive but the RSI is still trending below 50, indicating that the momentum is mixed at this juncture.
The resistance is envisaged around 1,610-1,615 while the support is set at 1,575-1,580. – Dec 3, 2024
