BELOW are excerpts of viewpoints from two selected research houses on what investors can expect in the day ahead:
The FBM KLCI lost further ground at the start of the week, falling in tandem with the regional equity markets’ weakness where sentiments were affected by China’s continuing property market woes.
In the process, the key index slipped below the psychological 1,450 level on the sustained selling pressure.
The broader market also succumbed to further selling with property stocks among the biggest losers for the day, leaving total losers to overwhelm gainers by more than a two-to-one margin.
Market conditions are becoming more subdued with the incessant market falls that are also leaving investor sentiments on the wane.
The spate of better-than-expected corporate results are also providing scant support as selling pressure remains with market players still opting to reduce their shareholding thus leaving the downtrend still largely in place.
Consequently, the near-term outlook remains insipid for now with further downsides looking to continue, particularly after the key index failed to hold on the 1,450 level which could point to further selling.
The weaker overnight closing in key global indices is also not shoring up confidence and could contribute to further near-term weakness among the FBM KLCI constituents. On the downside, the supports are at 1,444 and 1,442 points while the immediate hurdle is at 1,450 points, followed by 1,455 points.
Malacca Securities Research
The FBM KLCI further consolidated with more profit taking off the tables as 60% of the index heavyweights closed lower in line with the regional sentiment.
Meanwhile, Wall Street inched lower for the session as the holiday shopping season kicked in with retailers possibly focusing on Cyber Monday deals.
In the US, investors will be focusing on the core PCE (Personal Consumption Expenditures) and ISM Manufacturing PMI (Purchasing Managers Index) data that will be out later this week.
Meanwhile, we expect mild profit taking activities to emerge on our local front while focusing on the overall earnings season.
On the commodity markets, Brent crude prices traded near US$80/barrel with the anticipation that further production cuts may be seen in the OPEC+ meeting on Nov 30.
The FBM KLCI ended lower failing to rebound from the EMA20. The technical readings on the key index are negative with the MACD Histogram extending another negative bar while the RSI has dropped below 50.
The resistance is pegged around 1,455-1,460 while the support is at 1,430-1,440. – Nov 28, 2023