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 rebounded yesterday, breaking its downward streak as mild bargain hunting emerged. However, the gains were also relatively benign as buying interest was still mostly insipid.
Similar conditions were also prevalent among the broader market shares as they also attempted to mount a rebound but conditions were still mixed with total gainers and losers almost equal. Traded volumes were also little changed at around 2.5 billion shares.
We continue to see Bursa Malaysia stocks staying listless ahead of the Deepavali holiday tomorrow (Oct 31) due to the prevailing lack of buying interest that could still leave the FBM KLCI mostly on a drifting mode.
At the same time, there are few compelling buying opportunities which would leave most market players on the sidelines for longer.
Nevertheless, the key index could be attempting to find some support as it looks to build on yesterday’s recovery.
In particular, the key index would be looking to stay above the 1,610 level that could kick-start its long-awaited recovery and to find more stability.
Therefore, mild buying support could emerge to preserve the mild upsides with an immediate target set at the 1,620 level, followed by the 1,625 level. Apart from the 1,610 support, the other support is at 1,605 points.
Malacca Securities Research
Sentiment on the local front turned positive with both the FBM KLCI and FBM Small Cap edging higher as buying interest gradually built up.
However, Wall Street ended mixed ahead of the upcoming US presidential election, the FOMC (Federal Open Market Committee) meeting next week and investors awaiting quarterly results from major tech giants such as Apple, Microsoft, Amazon and Meta Platforms.
Key economic data to watch this week include the US core PCE (Personal Consumption Expenditures), US jobs data, US GDP (gross domestic product) and China’s manufacturing PMI (Purchasing Managers Index).
In the commodities market, Brent crude declined further amid weaker demand from China and easing tensions in the Middle East while gold prices continued to rally towards an all-time high around US$2,770/oz and CPO (crude palm oil) prices surged above the RM4,600/metric tonne level.
The FBM KLCI index rebounded above the 1,610 level. However, the technical readings on the key index are negative with the MACD histogram remained in the red and the RSI trended below 50.
The resistance is envisaged around 1,630-1,635 while the support is set at 1,595-1,600. – Oct 30, 2024
