Opening Daily Highlight
Mixed
Cautious sentiment prevails
Tue, 17-Dec-2024 07:17 am
by Research Team • Apex Research

  • Malaysia Market Review: FBM KLCI slipped -0.1% in tandem with the weakness across the regional markets yesterday, weighed down by the slower-than-expected retail sales growth in China. Similarly, the lower liners fell, while the Healthcare and Construction sectors both topped the laggard after falling -1.0% each.

     

  • Global Markets Review: Wall Street ended mixed with Nasdaq leading gains (+1.5%) led by rallies in Alphabet, Tesla, and Broadcom ahead of the Fed's policy meeting.  Meanwhile, Asian markets were mostly down on Monday, with investors keeping tab on several major central bank decisions, including Japan and China. The European markets remained downbeat dragged by the auto sector following the sudden departure of  Stellantis CEO.

     

  • Market Outlook: We expect the local bourse to trade sideways as investors stayed on the sideline while eagerly waiting for Fed’s decision on benchmark rate later this week. Likewise, the lower liners may trend within rangebound pattern as investors awaits fresh catalyst. Amid the current market volatility, foreign investors remain net sellers in the local bourse, capping gains from buying activity by local institutional funds. Economic wise, investors will closely monitor on UK inflation rate as well as a slew of key US economic data including retail sales, industrial and manufacturing production.

     

  • Sector focus. We reckon the Construction sector could gain traction as the Works Ministry projects RM200bn in spending across the government sector, GLCs, GLICs, and the private sector next year. Meanwhile, the Technology sector may advance in tandem with the gains in Nasdaq overnight.

     

  • Technical Commentary: The FBM KLCI formed a bearish candle as the key index attempts to defend the SMA200 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: 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
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