BELOW are excerpts of viewpoints from two selected research houses on what investors can expect in the day ahead:
Inter-Pacific Research
The key index trended within a tight band yesterday as the continuing lack of market interest left it to drift for the entire session.
Leads were still far and in-between causing most market players to stay on the sidelines. The lower liners were also directionless as most were range-bound but market breadth remained mildly positive as the key lower liner indices still gained.
However, the lack of buying interest was manifested in the thinner traded volumes that slipped below the 3 billion shares mark again.
We still see the near-term market conditions staying insipid after the recent market rebounded above the 1,600 level.
Further buying interest have largely evaporated with bargain hunting also becoming thinner due to sustained selling by foreign institutions that is placing the FBM KLCI on a defensive mode.
As it is, buying support from local institutions are also becoming more selective while the lack of sustained buying is set to leave the key index on the sideway trend for longer.
The key index would also be attempting to stay above the 200-day moving average line at around the 1,605 level for the time being to preserve the overall positive market trend.
Below this level, the other support is at the psychological 1,600 level while the resistances are pegged at 1,610 points and 1,615 points respectively.
Malacca Securities Research
The FBM KLCI continued to trend lower for the third consecutive day with nine out of 13 sectors ended negatively.
Similarly, Wall Street retreated further as investors traded cautiously ahead of the upcoming US CPI (Consumer Price Index) and PPI (Producer Price Index) data which may influence the US Federal Reserve’s rate outlook in the Federal Open Market Committee (FOMC) meeting scheduled for Dec 17-18.
Traders will also monitor other key events this week, including (i) initial jobless claims and the (ii) European Central Bank’s (ECB) rate decision.
In the commodities market, Brent crude rose marginally above the US$72/barrel level while gold is approaching the US$2,700/oz level.
Nevertheless, bitcoin broke below the US$100,000 level while CPO (crude palm oil) prices had experienced a sharp pullback, violating below the RM5,000/metric tonne mark.
The FBM KLCI retreated after hitting the 60-day MA line. Although the MACD Histogram expanded positively, the RSI hooked below 50, indicating that the momentum is mixed at this juncture.
Resistance is envisaged around 1,623-1,628 while support is set at 1,588-1,593.– Dec 11, 2024
