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Wed, 18-Dec-2024 07:13 am
by Research Team • Apex Research

  • Malaysia Market Review: FBM KLCI closed lower -0.6%, dragged by losses in more than half of the key index components yesterday. Similarly, the lower liners fell, while the Industrial (-1.7%) and Property (-0.9%) sectors both topped the laggard.

     

  • Global Markets Review: Wall Street tumbled despite stronger-than-expected November retail sales, as profit-taking in non-technology stocks intensified ahead of the Federal Reserve's upcoming interest rate decision. Meanwhile, Asian markets were mostly mixed, while the European markets remained downbeat with investors awaiting monetary policy decisions from major central banks this week.

     

  • Market Outlook: Again, we expect the local bourse to remain in consolidation mode as investors adopt a "wait and see" approach ahead of the Federal Reserve's decision later this week. With the 1,600 level giving way along with the negative performance on Wall Street overnight, we expect the downward bias consolidation to prolong. Likewise, the lower liners may trend within rangebound pattern in tandem with the weak trading sentiment. Also, the unabated foreign outflows are likely to pile pressure on to the local stock market. Economic wise, investors will closely monitor on UK and EU inflation rate as well as Malaysia trade balance.

     

  • Sector focus: We continue to recommend going long on gold-related stocks, as bullion typically performs well in a low-interest-rate environment. Additionally, we advise traders to maintain a defensive stance, focusing on the REIT sectors amid ongoing market volatility. On the other hand, the energy sector may face some selling pressure, due to declining oil prices following the release of weaker-than-expected retail sales data from China.

     

  • Technical Commentary: The FBM KLCI formed another bearish candle as the key index dipped below both the 1,600 level and SMA200. Indicators remained mixed as MACD Line floated above the Signal Line, while the RSI lingered below 50. Immediate resistance is located at 1,625. Support is envisaged around 1,570.

Sentiment: Negative
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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