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 remained on a losing note, ending yesterday a shade below the 1,450 level even as it managed to regain most of its intraday losses.
With few inklings for market players to follow, stocks were left to drift once again, spreading to the broader market as well.
As a result, market breadth stayed decidedly negative due to sustained selling albeit property stocks were the day’s big movers. Traded volumes, meanwhile, were higher than the pevious day.
There is no change to the immediate market outlook with the key index likely to stay indifferent as it awaits for more market impetuses to emerge.
However, there will still be few leads available as the year-end festivities approach with fewer corporate developments to keep market players interested.
Looking at prospects of Malaysian corporates in 2024 and with earnings growth still anaemic, other more convincing leads will be required to provide market players with the much need impetuses.
Even so, valuations are still mildly attractive and could help to provide some support and maintain the key index largely on a range for the time being. The 1,450 level is the immediate resistance, followed by the 1,455 and 1,460 levels. On the other hand, the supports are at 1,445 and 1,440 points respectively.
Malacca Securities Research
The FBM KLCI declined for another session amid profit taking activities. In the US, trading tone was mixed with the Dow Jones and S&P 500 ended slightly lower while the NASDAQ rose for the session.
The JOLTS report suggested that the US jobs opening was the lowest level since early 2021 in October while the market narrative for the US Federal Reserve has ended with the interest rates upcycle that could see a rate cut as early as March next year.
With the expectation of an interest rate cut next year, we think it may provide buying support to the local equities.
On the commodity markets, Brent crude prices dropped another 1.5% to trade below US$77/barrel amid unimpressed OPEC+ supply cut and demand concerns.
The FBM KLCI ended marginally lower, continuing in the consolidation phase. The technical readings on the key index are mixed with the MACD Histogram forming a rounding bottom formation while the RSI is threading below the 50 level.
The resistance is pegged around 1,460-1,465 while the support is at 1,430-1,440. – Dec 6, 2023
