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 firmed up further yesterday as selected buying on key index heavyweights helped to lift it past the 1,600 level at the close.
Much of the buying support were from local institutions that offset the still prevalent selling by foreign institutions as well as bucking the downbeat regional market performances amid the tariff threats from incoming US President Donald Trump.
Most lower liners closed in the red with market breadth still in the negative territory.
Although the key index managed to close above the critical 200-day moving average line and the psychological 1,600 level, conditions are still mostly indifferent and precarious as market confidence is still low.
Therefore, it remains to be seen if the upsides can be sustained as most market players are in a wait-and-see mode, thereby prolonging the uncertain outlook.
Nevertheless, as long as the key index is above the 200-day moving average line, the mildly positive trend will sustain that may allow the key index to firm up further ahead.
In the meantime, we think the FBM KLCI could attempt to solidify its position above the 1,600 level over the near term as it could now be attempting to find a firmer base.
On the upside, the resistances are at the 1,608-1,612 levels, followed by the 1,618-1,620 levels. The supports, on the other hand, are at 1,600 points which is also the 200-day moving average line and 1,695 points respectively.
Malacca Securities Research
The FBM KLCI closed above the 1,600 psychological level following the semi-annual review cut-off period.
Meanwhile, Wall Street ended on a positive note following US President Donald Trump’s protectionist remarks about imposing extra tariffs on Chinese imports as well as all products from Mexico and Canada.
This week, traders will monitor several key economic events, including: the FOMC (Federal Open Market Committee) meeting minutes; (ii) US Core PCE (Personal Consumption Expenditures) data; (iii) US 3Q 2024 GDP (gross domestic product); and (iv) China’s Manufacturing PMI (Purchasing Managers Index).
In the commodities market, Brent crude retreated below US$73/barrel level while gold prices declined below the US$2,700/oz mark as geopolitical tensions faded with potential ceasefire talks.
Meanwhile, CPO (crude palm oil) prices rebounded, closing above the RM4,700/metric tonne level as speculation grew that Indonesia may raise its export taxes and levies.
While the FBM KLCI regained traction above the 1,600 psychological mark, it is still trading below all the MAs line. The technical readings were negative with the MACD Histogram closing in the negative territory and the RSI trending below 50.
The resistance is envisaged around 1,618-1,623 while the support is set at 1,583-1,588. – Nov 27, 2024
