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 mounted a firm rebound yesterday as bargain hunting from local institutions on selected index heavyweight lifted it past the 1,600 level as well as above the 200-day moving average line in tune with the regional gains.
Local institutional buying also helped to offset the sustained selling by foreign funds with traded volumes surpassing 3 billion shares. The lower liners also made headway by enabling market breadth to turn positive for the day.
With the key index pushing past the 1,600 level, the outlook has turned mildly positive. However, it remains to be seen if yesterday’s buying can be sustained as the gains were selective and predominately bargain hunting by domestic funds.
There needs to be firmer follow-through buying interest for the uptrend to be sustained, otherwise it could just be the start of the year-end window dressing activities.
For now, we see the key index attempting to stay above the 1,600 level with continuing mild support on some of the recently beaten-down key index constituents but market conditions could also become choppier due to the instability in South Korea’s political environment that could keep market players wary.
On the upside, the hurdles are at the 1,608-1,611 levels, followed by the 1,615 level. Below the 1,600 support, the other support is at 1,595 points.
Malacca Securities Research
The FBM KLCI extended its gains, closing above the key 1,600 psychological level. As the earnings season concludes, we anticipate the upward momentum to sustain with the start of the window-dressing period.
Meanwhile, US markets traded mixed with the S&P 500 and the Nasdaq briefly hitting record highs amid the JOLTS job opening exceeded expectations (indicating a stronger labour market).
Going forward, traders will monitor key indicators like the unemployment rate, non-farm payrolls (NFP), weekly unemployment claims and commentary from the US Federal Reserve.
In the commodities market, Brent crude rose above US$73/barrel driven by Iran crude sanctions and ahead of OPEC+ meeting.
Gold traded flat following strong US jobs data which hinted at a cautious approach to rate cuts by the Fed while CPO prices gained momentum and closed above the US$5,100/metric tonne level.
The FBM KLCI ended higher, closing above the 1,600 psychological level. Meanwhile, the MACD histogram formed another positive bar yet the RSI is still trending below 50, indicating that the momentum is mixed at this juncture.
Resistance is envisaged around 1,621-1,626 while the support is set at 1,586-1,591. – Dec 4, 2024
