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 gained further ground yesterday to reclaim the 1,620 level at the close, aided by sustained nibbling of selected index-linked stocks that also extended its recovery after having touched the 1,600 points support level recently.
This time, it was local institutions that provided the buying support as foreign funds took profit. In the broader market, there were also further rebound which sustained the positive market breadth.
Near-term market conditions are firmer after the key index found support at the 1,600 level which is also the “make-or-break” 200-day moving average line.
With the recovery, the key index could mount further gains as it attempts to move away from the above psychological level.
However, there could still be some hesitation as market players await the outcome of the US presidential election that may take days to decide.
Furthermore, there is also continuing wariness over the US Federal Reserve’s upcoming interest rate decision that may keep market players on the defensive for the time being.
Therefore, any upsides will still be modest with the next target set at the 1,622-1,625 levels, followed by the 1,630 level. The supports, meanwhile, are at 1,616 and 1,610 points respectively
Malacca Securities Research
In tandem with the positive performance in Asian markets, the FBM KLCI gained momentum and closed higher.
Wall Street also closed firmer, buoyed by gains in NVIDIA (+2.84%) and Palantir; the latter posted stronger-than-expected results, highlighting significant growth in AI (artificial intelligence)-driven earnings.
We believe the market will closely watch the US presidential election and the upcoming FOMC (Federal Open Market Committee) meeting which could introduce significant volatility as well as determine overall market direction.
In the commodities market, Brent crude continued its rally as OPEC+’s production cuts postponement and on-going geopolitical tensions in the Middle East contribute to stronger oil trading.
Meanwhile, gold prices remained flat in the US$2,730–2,740/oz range while CPO (crude palm oil) prices retreated on profit-taking by ending below the RM4,800/metric tonne level.
The FBM KLCI index closed higher towards the 1,620 level. However, the technical readings on the key index were negative with the MACD histogram remained negative and the RSI hovering below 50.
The resistance is envisaged around 1,635-1,640 while the support is set at 1,600-1,605. – Nov 6, 2024
