BELOW are excerpts of viewpoints from two selected research houses on what investors can expect in the day ahead:
Inter-Pacific Research
Bursa Malaysia equities rebounded yesterday, breaking its six-day losing streak as the key index held on to the 1,650-support level and rising in tandem with the recovery in many global equity markets.
Market conditions were also calmer to aid the broad-based recovery even as market breadth was still mixed with gainers just ahead of losers.
Consequently, the FBM Small Cap and FBM ACE indices ended the day on another losing note as market interest remained largely tepid.
With the key index ending yesterday at the 1,660 level, it will be looking to extend the rebound to push pass the level and sustain its recovery trend.
However, market conditions are still largely unsettled due to the lack of positive leads and yesterday’s rebound may only be to break the downward spell.
Much stronger impetuses are still needed for a firmer recovery to materialise but with valuations already fair a substantial rebound could still be elusive.
Instead, the FBM KLCI may just creep higher, boosted by the support buying on some of the beaten down index heavyweights while looking to build up a base around the 1,650 and 1,670 levels for the time being.
There is an interim support at the 1,653 level, followed by the 1,650 level. The resistances, meanwhile, are at 1,663 and 1,670 points respectively.
Malacca Securities Research
The Bursa Exchange rebounded, led by the FBM KLCI following strong buying interest in banking heavyweights. However, the small-cap index remained in negative territory for the session.
Meanwhile, US stock markets ended mixed with the Dow declining while technology stocks rebounded ahead of key inflation data – the CPI (consumer price index) and PPI (producer price index) – to be released tonight and tomorrow respectively.
Investors will likely keep a close watch on the developments in the Harris-Trump presidential debate as it could provide insights into which sectors to focus on.
In the commodity markets, Brent crude continued to fall, breaking below US$70/barrel due to concerns over China’s slowing economy and growing recession fears.
However, gold prices surged above US$2,500/oz as traders anticipated a rate cut by the US Federal Reserve next week. Crude palm oil prices (CPO) also dropped, trading below RM3,900/metric tonne.
The FBM KLCI index rebounded towards the 1,660 level. However, the technical readings on the key index were mixed with the MACD histogram forming another negative bar but the RSI trended above 50.
The resistance is envisaged around 1,675-1,680 while the support is set at 1,640-1,645. – Sept 11, 2024
