BELOW are excerpts of viewpoints from two selected research houses on what investors can expect in the day ahead:
Inter-Pacific Research
The key index recovered yesterday, regaining the 1,670 level at the close amid a more upbeat equity market environment after Beijing announced new stimulus measures to aid its economy.
Coupled with the record closing on Wall Street overnight, sentiments were further bolstered that also helped the FBM KLCI’s recovery.
However, the broader market was mixed and this was manifested in the nearly equal number of loser and gainers with traded volumes little changed.
Near-term market conditions are likely to stay sanguine, bolstered by continuing interest in global equities that should also permeate to the local market.
The market’s undertone remains firm amid the more relaxed monetary conditions globally that are aimed to spurring economic growth for this will also extend to the stock market.
Confidence in the Malaysian economy is also building up and collectively, these positives should provide further impetus for the key index to head higher over the near-term.
Nevertheless, we still contend that much of the positives are already reflected in the current valuations with further upsides likely to remain modest.
Therefore, the FBM KLCI’s immediate target is the 1,675 level, followed by the 1,680 level. The supports, meanwhile, remain at 1,665 and 1,660 points respectively.
Malacca Securities Research
The FBM KLCI rebounded after a two-day sideways movement as sentiment turned more bullish following China’s release of a slew of stimulus packages to boost its struggling economy and markets.
Meanwhile, the US stock markets brushed aside weaker-than-expected data from both (i) consumer confidence and (ii) the Richmond Manufacturing Index.
Traders continued to push the markets higher, ending the session on a firmer note with both the Dow and S&P500 charging toward record closings.
In the commodities market, Brent crude rebounded above US$75/barrel while crude palm oil (CPO) prices surged above RM4,000/metric tonne driven by China’s stimulus measures. Gold prices also rose, climbing above the US$2,650/oz zone.
The FBM KLCI index closed higher towards the 1,670 level. Also, the technical readings on the key index were positive with the MACD histogram extended another positive histogram and the RSI stayed above 50.
The resistance is envisaged around 1,690-1,695 while the support is set at 1,650-1,655. – Sept 25, 2024
