Opening Daily Highlight
Mixed
Potential negative Wall Street spillover
Fri, 13-Dec-2024 07:32 am
by Research Team • Apex Research

  • Malaysia Market Review: The FBM KLCI slipped by -0.07%, marking its fifth consecutive day of decline, bucking the positive performance on Wall Street overnight, as foreign fund outflows persisted. Lower liners also closed lower. Among the sectors, Industrial (+0.4%) emerged as the top gainer, while the Healthcare sector (-1.15%) led the decliners, facing selling pressure on hospital stocks amid discussions on rising insurance premiums and profit-taking in glove counters.

     

  • Global Markets Review: Wall Street ended broadly lower after unfavourable economic data, with the PPI exceeding expectations and jobless claims coming in higher than anticipated. European markets also retreated as investors digested the weak US data and a rate cut by the ECB. Conversely, Asian markets ended mostly higher, tracking earlier positive performance in the US. The Hang Seng rebounded by +1.2%, while the Nikkei and Shanghai Composite gained +1.2% and +0.85%, respectively.

     

  • Market Outlook: The FBM KLCI continues to face pressure from sustained foreign fund outflows, which appear to be flowing into US markets, buoyed by stronger confidence in the protectionism policies. Following the weaker performance from Wall Street, we anticipate the negative sentiment may spillover to the local bourse, potentially prompting extended pullback. However, the key index seems to be finding support near the psychological 1,600 level, which may offer some stability.

     

  • Sector focus: Healthcare sector expected to remain under pressure amid ongoing discussions on rising insurance premiums, with potential measures from BNM next week further impacting sentiment. Technology sector likely to face headwinds following Nasdaq's negative performance overnight.

     

  • Technical Commentary: The FBM KLCI formed another doji candle as the key index remain defended above the 1,600 psychological level. Indicators remained 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: Negative
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