Opening Daily Highlight
Mixed
All eyes on US CPI
Wed, 11-Dec-2024 07:29 am
by Research Team • Apex Research

  • Malaysia Market Review: The FBM KLCI extended its decline for the third consecutive day on Tuesday, slipping by -0.2%, dragged down by unabated foreign fund outflows and a rotation of funds into lower liners. Despite this, lower liners ended higher, with broader market breadth turning positive as gainers outnumbered decliners. The Healthcare sector (+1.8%) maintained its upward momentum as the top gainer with gloves-related stocks marching to multi-months high, while the Utilities sector (-0.7%) emerged as the largest decliner.

     

  • Global Markets Review: Wall Street extended its losses, led by decline in technology stocks, as investors shifted focus to the upcoming US CPI data, which is expected to provide clues about the Fed’s next interest rate decision. Similarly, European markets ended their winning streak, weighed down by cautiousness ahead of the CPI release. In Asia, markets were mostly higher; the Hang Seng retreated by -0.5%, while the Nikkei and Shanghai Composite gained +0.5% and +0.6%, respectively.

     

  • Market Outlook: The FBM KLCI is expected to remain under pressure today, reflecting Wall Street’s negative performance overnight and unabated outflows of foreign funds. For now, the key index may attempt to defend the 1,600 psychological level. Additionally, funds are likely to continue rotating into smaller-cap stocks. Investors are expected to trade cautiously ahead of the US CPI data, which could provide a clearer indication of the Fed’s monetary policy direction.

     

  • Sector focus: Consumer sector likely to attract funds, given its relatively lower volatility investors adopt a cautious stance ahead of the US CPI data coupled with the China potential stimulus on next year. Plantation sector may see profit-taking activities following the retreat in CPO prices.

     

  • Technical Commentary: The FBM KLCI formed a bearish candle to edge mildly lower as the key index stay afloat above SMA200. 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: Negative
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Market Mover
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USD 4.373243 4.414705
EUR 4.565507 4.577376
CNY 0.602867 0.604630
HKD 0.561419 0.566456
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