BELOW are excerpts of viewpoints from two selected research houses on what investors can expect in the day ahead:
Inter-Pacific Research
Window dressing activities extended into the penultimate trading day of the year with institutional players picking up selected index heavyweights ahead of the year-end break.
Foreign institutions also turned net buyers albeit marginally, thus helping to also shore up the FBM KLCI.
In the broader market, conditions were mixed but most Bursa sector indices rose and allowed for total gainers to still beat losing ones for the day. Traded volumes, however, eased further due to the lack of fresh leads.
With few signs of any impending pullback, there could be more near-term upsides in the final trading day of 2024.
However, profit taking may also emerge as the key index’s recent jump was largely due to window dressing activities and market conditions are already near overbought.
As such, further gains could also be milder as the buying interest may wane ahead of the tomorrow’s start-of-the-year holiday with the increased profit taking to possibly limit the upsides as well.
At the same time, there is little change to the market fundamentals which could further prevent stronger gains over the near term.
On the upside, the hurdles are set at 1,640 points and 1,645 points respectively. There is immediate support at 1,635 points, followed by 1,630 points.
Malacca Securities Research
The local bourse began the week on a positive tone, extending its five-day winning streak, supported by buying interest in banking as well as industrial products and services heavyweights, likely driven by window-dressing activities by funds.
In the US, markets ended lower despite a 2.2% rise in pending home sale as technology heavyweights faced selling pressure in recent session due to over-stretched movements and valuations.
This week, traders will monitor key economic data, including US unemployment claims and the ISM Manufacturing PMI (Purchasing Managers’ Index).
In the commodities market, Brent crude posted marginal gains, ranging around US$73-US$74/barrel while gold closed lower around the US$2,600-US$2,610/oz levels, hence maintaining a negative bias. However, CPO (crude palm oil) prices weakened to below RM4,600/metric tonne.
The FBM KLCI closed on a bullish note after breaking above the EMA60. The MACD histogram has turned positive while the RSI has crossed above 50, suggesting that the momentum is positive at the current juncture.
Resistance is anticipated around 1,652-1,657 while support is set at 1,617-1,622. – Dec 31, 2024
