BELOW are excerpts of viewpoints from two selected research houses on what investors can expect in the day ahead:
Inter-Pacific Research
Once again, the key index succumbed to profit taking activities as it suffered minor losses yesterday with foreign institutions extending their selling activities.
There were, however, support from local institutions to stem the losses which also enabled the FBM KLCI to stay above the 1,610-support level. In the broader market, many shares lost ground, ending their upward streak with market breadth also turning negative as a result.
We see little change to the immediate market environment with the drifting trend likely to persist. As it is, there remain few noteworthy leads for market players to follow while the profit taking by foreign funds is likely to continue for now.
At the same time, local institutions will continue to provide some buying support over ahead of the US Federal Reserve’s interest rate decision later this month.
In the interim, the key index is likely to remain directionless that also see the 1,610 level under threat again.
If the level gives way, the supports are lowered to the 1,603-1,605 level which is also the 200-day moving average line with a breach of this level potentially renewing the bearish trend. Meanwhile, the hurdles are at 1,615 points and the 1,620 level respectively.
Malacca Securities Research
The FBM KLCI extended its loss for the second consecutive day with all sectors ended on a bearish tone except plantation.
Meanwhile, Wall Street has also ended on a negative note following a series of all-time highs with traders awaiting key inflation data that will help shape the outlook for US Fed rates.
Traders will continue to monitor several key events this week, including (i) US CPI (Consumer Price Index) data; (ii) US PPI (Producer Price Index) data, (iii) initial jobless claims; and (iv)the ECB (European Central Bank) rate decision.
In the commodities market, Brent crude rose marginally but still trading around the US$71/barrel level. Gold traded sideways around the US$2,660/oz level while CPO (crude palm oil) prices are trading above the RM5,100/metric tonne level.
The FBM KLCI retreated after hitting the 60-day moving average line. Meanwhile, the MACD Histogram expanded positively with the RSI having hooked above 50, indicating that the momentum is positive at this juncture.
Resistance is envisaged around 1,626-1,631 while support is set at 1,591-1,596. – Dec 10, 2024
