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 sustained its rebound for a second day to also haul past the 1,660 level at the close in anticipation of an interest rate cut in the US.
Mild bargain hunting remained on many of the index heavyweights albeit buying interest remaining tepid.
In the broader market, glovemakers saw renewed interest with the US implementing higher tariffs on China gloves that bolstered sentiments on stocks like Hartalega and Top Glove. Market breadth was on the positive side as volumes rose past 3 billion shares.
With anticipation mounting on an interest rate cut in the US, FBM KLCI stocks could gain further ground that would extend the near-term recovery to a third day.
As it is, market sentiments are seeing some improvement after the recent pullback with the key index having regained traction to linger within the 1,650 and 1,670 levels in what is seen as a base building exercise.
This base is seen as a springboard for further upsides towards the end of the year as the country’s economic undertone is widely tipped to stay resilient heading into 2025 that could further bolster market sentiments.
Amid the continuing gains, the key index may now target the 1,670 level over the near-term before taking aim at the 1,675 level. On the downside, there are supports at the 1,660 level and at 1,655 points respectively.
Malacca Securities Research
The FBM KLCI gained momentum, driven by strength in banking and healthcare heavyweights.
Investors also shifted focus to glove companies after the Us Trade Representative (USTR) imposed higher tariffs on Chinese products like gloves and electric vehicles (EVs).
Meanwhile, Wall Street traded mixed ahead of the Federal Open Market Committee (FOMC) meeting with investors awaiting the US Federal Reserve’s decision following August’s retail sales which came in at 0.1%, beating the -0.2% consensus.
In the commodities market, Brent crude extended its rebound due to supply disruptions from Hurricane Francine and potential declines in oil exports from Libya.
Gold prices remained near record highs, holding above US$2,570/oz but crude palm oil (CPO) slipped below RM 3,800/metric tonne, pressured by the strong ringgit and India’s decision to raise taxes on edible oils.
The FBM KLCI index closed higher towards the 1,664 level. However, the technical readings on the key index were mixed with the MACD histogram forming another negative bar but the RSI gained above 50.
The resistance is envisaged around 1,679-1,684 while the support is set at 1,644-1,649. – Sept 18, 2024
