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 decent rebound yesterday, breaking a four-day downtrend and climbing back above the psychological 1,450 level in the process.
The upsides were in tandem with the improved performances of many regional indices that mirrored the firmer Wall Street performance a day earlier.
Still, the broader market was mixed amid the continuing mild bouts of profit taking that left market breadth on an almost equal footing.
Yesterday’s rebound was welcome to break the downtrend and to bring back some measure of stability to the market after the recent pullback.
Market conditions could stay positive in the day ahead as bargain hunting could sustain following the strong gains on Wall Street overnight that were buoyed by the US’ easing inflationary pressure.
Back home, market players will also be waiting for the upcoming release of the country’s 3Q 2023 GDP (gross domestic product) performance at the end of the week that could provide some insights into the economic undertone in 4Q 2023 and into early 2024.
The ongoing results reporting will also be closely monitored by market players for clues into corporate prospects in 2024.
With conditions staying sanguine for the time being, the key index could now target the 1,455-1,457 levels before making a pass at the 1,460 level. The immediate support is at the psychological 1,450 level, followed by the 1,445 level.
Malacca Securities Research
The FBM KLCI closed higher yesterday after last Friday’s volatile move which prompted us to believe that investors could be positioning themselves ahead of the corporate earnings season.
Meanwhile, the cooler-than-expected CPI (Consumer Price Index) data in the US had been fuelling a strong rally.
Investors will be watching out for the US PPI (Producer Price Index) data that will be released tonight; should it come in below the consensus estimates, this may provide another boost for stocks markets generally.
Some other significant data and events include (i) retail sales later tonight, (ii) unemployment claims on Friday and (iii) an upcoming meeting between US-China.
On the commodity markets, Brent crude prices traded towards an intraday high of around US$84/barrel amid softer greenback after the CPI data release before easing towards US$82/barrel.
The FBM KLCI ended higher yesterday. The technical readings on the key index are mixed with the MACD Histogram forming a rounding top formation while the RSI maintains above 50.
The resistance is pegged around 1,470-1,480 while the support is at 1,440-1,450. – Nov 15, 2023
