Opening Daily Highlight
Mixed
China stimulus positivity may spillover
Tue, 10-Dec-2024 07:21 am
by Research Team • Apex Research

  • Malaysia Market Review: The FBM KLCI extended its decline on Monday, slipping by 0.1%, weighed down by continued foreign fund outflows. Lower liners also ended lower, reflecting broader market weakness despite Wall Street's positive performance last Friday. The Plantation sector (+0.2%) stood out as the sole gainer, supported by resilient CPO prices, while the Utilities sector (-1.2%) led the decliners.

     

  • Global Markets Review: Wall Street closed lower on Monday, with tech stocks under pressure ahead of US CPI data this week. Sentiment was dampened by a decline in Nvidia's shares following China's antitrust investigation into the chip giant. Conversely, European markets extended their rally, with the key index marking its eighth consecutive day of gains as China signalled more stimulus for next year. Asian markets were mixed; the Hang Seng surged by +2.8%, while the Nikkei and Shanghai Composite posted modest gains of +0.2% and a slight dip of -0.05%, respectively.

     

  • Market Outlook: The FBM KLCI may pause its pullback trend today as signs of foreign fund outflows eased alongside continued support from local institutional investors. Year-end window dressing activity is also anticipated to lend support to the market. Globally, investors will focus on US CPI data due later this week, which is expected to provide insights into the Fed's upcoming rate decision. Additionally, China’s signal of more stimulus measures for next year could spill over positive sentiment into the local bourse today.

     

  • Sector focus: Plantation likely to remain resilient amid market volatility, supported by firm CPO prices. Consumer-related may attract buying interest on hopes of increased tourist arrivals driven by China's expected stimulus measures while Gold-related counters could see interest due to higher gold prices, supported by ongoing Chinese purchases and expectations of a Fed rate cut this month.

     

  • Technical Commentary: The FBM KLCI closed mildly lower after recovering most of its intraday losses as the key index formed a hammer candle yesterday. Indicators remained positive as MACD Line floated above the Signal Line, while the RSI steadied above 50. Immediate resistance is located at 1,625. Support is envisaged around 1,570.

Sentiment: Neutral
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Market Mover
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Currency Buy Rates (RM) Sell Rates (RM)
USD 4.375354 4.412699
EUR 4.573391 4.585347
CNY 0.603938 0.605575
HKD 0.561409 0.566244
SGD 3.236779 3.265133