Opening Daily Highlight
Mixed
Staying above 1,600 level
Mon, 16-Dec-2024 06:25 am
by Research Team • Apex Research

  • Malaysia Market Review: The FBM KLCI climbed +0.4%, driven by optimism that the U.S. Federal Reserve might lower interest rates at its upcoming meeting, following hotter-than-expected US wholesale inflation data. Similarly, the lower liners advanced, while the Healthcare sector (+2.9%) outperformed among its sectorial peers.

     

  • Global Markets Review: Wall Street ended mostly flat except for the Nasdaq which rebounded on last Friday, supported by a surge in Broadcom shares (+24.4%) following its guidance on an AI-driven sales outlook. Meanwhile, Asian markets fell led by losses in China markets after Beijing reaffirms the recent policy adjustments and emphasis on stimulating growth. The European markets also declined, weighed down by a contraction in UK GDP and weaker export data from Germany.

     

  • Market Outlook: While the FBM KLCI managed to tick higher owing to mild buying support, we foresee the benchmark to hover within the 1,600 to 1,630 level. Likewise, the lower liners may trend within rangebound pattern as investors awaits fresh catalyst. Amid the current market volatility, funds may continue shifting from small-cap stocks to blue-chip equities during this period of global market turbulence. Economic wise, investors will closely monitor a slew of key Chinese data later today, including retail sales, the unemployment rate, the house price index, and industrial production.

     

  • Sector focus: The automotive sector is projected to outperform, with TIV expected to rebound driven by aggressive year-end promotions from automotive dealers. Earlier, MAA has revised its full-year TIV forecast to 800,000 from 765,000, exceeding the record sales achieved in 2023. We also favour gold-related stocks despite their recent decline, as we believe a recovery is likely with a Fed rate cut next week.

     

  • Technical Commentary: The FBM KLCI formed a bullish candle to snap a five-day losing streak as the key index re-claimed the SMA200 level. Indicators turned positive as MACD Line floated above the Signal Line, while the RSI ticked above 50. Immediate resistance is located at 1,625. Support is envisaged around 1,570.

Sentiment: Positive
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Market Mover
Settlement Rates
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