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 surrendered all of its intraday gains in a late session sell-down that also saw the key slipping below the 1,580 level at the close.
The selling pressure also permeated to the broader market where most broader market indices also fell in tandem with construction stocks losing the most ground.
In the same vein, market breadth stayed negative amid the sustained selling. However, the selling volume increased with nearly 3.5 billion shares traded yesterday.
The key index’s failure to hold on to its intraday gains coupled with the subsequent fall below the 1,580 level is leaving a dour outlook, fortifying the selling strength in the process.
With the downtrend deeply entrenched, selling may continue that could see the oversold conditions persisting for the time being even as a technical rebound is already due.
As it is, buying interest remains thin with local players supporting the market as foreign players continues to trim their shareholding of Malaysian equities.
Under the prevailing environment, we still see sentiments remaining frail with downside bias still taking hold that could see further weakness ahead.
On the downside, the supports are at 1,572 points and 1,564 points while the resistances are at 1,585 and 1,590 points respectively.
Malacca Securities Research
The local bourse continued its sell-off, dragged down by utilities and construction heavyweights.
While the US PPI (Producer Price Index) data came in softer, Wall Street closed mixed ahead of another inflation data release tonight where we foresee softer data would indicate easing inflationary pressure which in turn shall boost the sentiment in both global and local markets.
In the commodities market, Brent crude retreated due to profit-taking by trading around US$79/barrel while gold rebounded to US$2,670/oz after the softer PPI data. CPO prices hovered around RM4,450/metric tonne to close the gap from the previous day’s trading session.
The FBM KLCI saw another sell-off after breaking below the moving average lines. The MACD Histogram continued to expand negatively while the RSI approached the oversold level, indicating negative momentum at the current juncture.
Resistance is anticipated around 1,591-1,596 while support is set at 1,556-1,561 – Jan 15, 2025
