BELOW are excerpts of viewpoints from two selected research houses on what investors can expect in the day ahead:
Inter-Pacific Research
Despite lingering in the positive zone for most of the day, the FBM KLCI succumbed to late selling to end the day on a losing note yesterday albeit the losses were mostly superficial as it stayed above the psychological 1,600 level.
Broader market conditions fared slightly better and were mildly positive on mild bouts of bargain hunting that enabled many lower liners to close higher.
This further helped market breadth to turn slightly positive with traded volumes rising to nearly 3 billion shares.
We see the key index staying above the 1,600 level over the near term as it attempts to form a firmer base around the above psychological level after briefly breaching the longer-term uptrend line of 1,595 points last Friday (Nov 15).
With the positive undertone restored, the key index could now look to find more near-term stability that could also help to extend its longer-term uptrend.
Even so, more meaningful upsides could still be elusive due to the prevailing lack of impetuses which is likely to keep most market players on the sidelines for longer, particularly among foreign players that are shifting their positions to US equities.
As such, any uptrend may be limited to around the 1,607-1,610 levels over the near term with the ensuing resistance pegged at the 1,615 level. The 1,600 level remains the immediate support, followed by the 200-day moving average line at 1,595 points.
Malacca Securities Research
The FBM KLCI posted a small decline due to a last-minute sell-down amid profit-taking activities in banking heavyweights.
In the US, geopolitical headlines related to Ukraine initially exerted selling pressure on equities but stocks quickly rebounded to end the day higher as investors anticipate NVIDIA’s earnings announcement tomorrow.
Moreover, traders will monitor several key events, including (i) China’s loan prime rate decisions; (ii) UK’s October CPI (consumer price index); (iii) US crude oil inventory levels; and (iv) initial jobless claims in the US.
In the commodities market, Brent crude traded around US$73/barrel following news from the International Atomic Energy Agency that Iran agreed to halt the production of near bomb-grade uranium albeit geopolitical tensions remain elevated.
Gold prices surged past the US$2,600/oz mark while CPO (crude palm oil) prices rebounded near the RM5,000/metric tonne psychological level.
The FBM KLCI index is still supported above the 1,600 psychological mark. However, the technical readings were negative with the MACD Histogram closing on the negative territory and the RSI trending below 50.
The resistance is envisaged around 1,617-1,622 while the support is set at 1,582-1,587. – Nov 20, 2024
