Opening Daily Highlight
Mixed
Attempting to find stability above 1,600
Thu, 12-Dec-2024 06:46 am
by Research Team • Apex Research

  • Malaysia Market Review: The FBM KLCI (-0.4%) took another step backwards after lingering in the negative territory throughout the trading session with two third of the key index components closed in red yesterday. The lower liners, however, ended mixed. Meanwhile, the Technology sector (+0.5%) outperformed, while the Healthcare sector (-1.7%) was the biggest loser after paring down some of its recent rally.

     

  • Global Markets Review: Wall Street finished mixed with the Dow (-0.2%) turning lower for the fifth straight session after inflation rate in November (+2.7% yoy) ticked marginally higher, but the S&P 500 (+0.8%) rebounded, boosted by technology giants. European markets ended broadly higher ahead of the ECB interest rate decision today. In Asia, markets were mixed; the Hang Seng index retreated by -0.8%, while the Nikkei and Shanghai Composite added +0.01% and +0.3%, respectively.

     

  • Market Outlook: Given that the US inflation data came within expectations, the path of interest rate cut remains well in focus and this will provide some alleviation towards the recent uncertainties. After multiple sessions of pullback, we reckon the FBM KLCI is ripe for potential recovery with bargain hunting activities may seep into the picture. The key index looks to defend the 1,600 level for the time being. Elsewhere, the lower liners are bracing for a consolidation after enjoying a decent run in recent weeks with rotational play remain in focus. Going forward, investors will be keeping a close tab onto US PPI data to be release later tonight.

     

  • Sector focus: We expect the Technology sector to build onto its previous session gains, taking cue from the positive developments on Nasdaq overnight which re-claimed the 20,000 psychological level. Health Minister Datuk Seri Dr Dzulkefly Ahmad announcement on the diagnosis-related group (DRG) pricing system to regulate private hospital bills that is likely to be rolled out by Q2 2025 is expected to impact the healthcare sector.

     

  • Technical Commentary: The FBM KLCI gapped down to form a doji candle as the key index continues to defend the 1,600 level. Indicators turned mixed as MACD Line floated above the Signal Line, while the RSI dipped below 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 4.373243 4.414705
EUR 4.565507 4.577376
CNY 0.602867 0.604630
HKD 0.561419 0.566456
SGD 3.236779 3.265133