BELOW are excerpts of viewpoints from two selected research houses on what investors can expect in the day ahead:
Inter-Pacific Research
The FBM KLCI mounted a rebound yesterday but ended the day off its intraday high as persistent selling by foreign institutional players limited the upsides.
Selected key index constituents like banking and telco stocks rose in what is seen as mild window dressing that allowed the key index to post the quick recovery.
The broader market was again subdued due to the low retail interest which left market breadth stuck in the negative territory.
We see the key index continuing to drift amid the low participation rate ahead of the Christmas break tomorrow.
For the most part, market conditions are still directionless due to the lack of the leads and will likely remain so until the start of 2025 due to the on-going holiday season.
At the same time, traded volumes will also be staying on the low side as a result.
Nevertheless, there could still be bouts of window dressing by domestic funds which should keep the key index near the psychological 1,600 level as the key index looks to close of the year around that level.
Above the 1,600 resistance, the others are at 1,605 and 1,610 points respectively. The immediate support is at the 1,595 level, followed by the 1,590 level
Malacca Securities Research
The local bourse closed higher following the index re-balancing activities with buying interest observed across the banking heavyweights during the on-going window dressing period, lifting the index.
In the US, Wall Street kicked off the holiday-shortened trading week on a bullish tone with the “Magnificent Seven” rally boosting the market higher.
However, as several major markets including the US, UK and Hong Kong will close early today in anticipation of Christmas holiday with the early closures potentially lead to subdued market activities.
In the commodities market, Brent crude continued to hover below the US$73/barrel level. Meanwhile, gold prices ended flat around US$2,610-US$2,620/oz while CPO (crude palm oil) prices finally rebounded above RM4,500/metric tonne.
Despite the rebound, the FBM KLCI index is still trading below the 1,600 level. The MACD histogram is trading at the negative territory while RSI is also trending below 50, suggesting negative momentum at this current juncture.
Resistance is anticipated around 1,611-1,616 while support is set at 1,576-1,581. – Dec 24, 2024
