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 managed to eke-out some gains yesterday by bucking the mostly insipid regional equity markets where sentiments were affected by China’s weaker-than-expected manufacturing data.
The positivity also allowed the key index to regain the 1,440 level with most other broader market shares also tipping higher.
Collectively, the rebound allowed market breadth to turn positive albeit gainers just pipping losers while traded volumes rose to end near the 3.0 billion shares mark.
Near-term market conditions should remain mildly positive, buoyed by the continuing rebound on Wall Street stocks that are also permeating to Bursa Malaysia.
This should allow the key index to fortify its stay above the 1,440 level and maintain its base building exercise within the 1,440 and 1,450 levels for now.
Further gains, however, could still be hard to come by due to the lack of leads with market players awaiting for the US Federal Reserve’s interest rate decision tomorrow.
Locally, market players will be keeping a look-out on the upcoming corporate results to gauge their outlook for 2024. In the meantime, the near-term resistances remain at 1,445 points and the psychological 1,450 level.
On the other hand, the immediate support is at 1,440 points, followed by the 200-day moving average line of 1,437 points.
Malacca Securities Research
The FBM KLCI could be experiencing a flag formation breakout despite softer closing in the regional markets where it was affected by the softer China PMI (Purchasing Managers’ Index) data.
Meanwhile, investors traded more positively on Wall Street ahead of the conclusion of the Federal Open Market Committee (FOMC) meeting as the consensus view is that the interest rate will be kept unchanged.
Given the more positive set-up within the overall global markets, we believe that buying interest may spill over to the local front.
Key data to watch out will be the (i) US ISM Manufacturing PMI and (ii) jobs data. Also, if there is a switch of tone from the US Fed in the FOMC meeting, it may provide additional volatility to the markets.
On the commodity markets, Brent crude prices fell more than 1% as data showed rising OPEC and the US output.
The FBM KLCI ended slightly higher and might be experiencing a flag formation breakout. The technical readings on the key index are positive with the MACD Histogram extending another positive bar after rebounding off the zero level while the RSI has hooked above 50.
The resistance is pegged around 1,450-1,460 while the support is at 1,420-1,430. – Nov 1, 2023
