FBM KLCI Technical Review & Outlook

In its technical commentary, Apex notes the FBM KLCI formed a bullish candle to recover all of previous session gains and bounced above SMA50 level.

Indicators turned mixed as the MACD Line hovered below the Signal Line, while the RSI hooked above 50. Immediate resistance located at 1,650. Support is envisaged around 1,580

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Technical review

The FBM KLCI (+0.9%) staged a recovery on the back on quick bargain hunting on banking heavyweights. Meanwhile, the lower liners were mixed, while the technological sector (-1.2%) was the worst performer among its sectoral peers.

Global Markets Review

Wall Street US stock markets closed higher, propelled by stronger-than-expected results from Meta. The European stock markets and Aisa stock markets closed mostly higher with the former gaining momentum after euro zone inflation rose unexpectedly in July exceeding consensus expectation by 0.2%.

Market Outlook

“We anticipate the FBM KLCI to build onto yesterday’s gains as investors cheer onto the dovish stance over the interest rate decision from the Fed overnight.

“We expect the lower liners to see improved trading sentiment as bargain hunting activities emerge. Economic wise, investors will also be keeping an eye onto a slew of key economic data including Bank of England rate decision, EU unemployment rate and manufacturing data to be release today.

“Moving forward, we expect the technology sector to recover, mirroring gains in Nasdaq performance overnight. Also, we advocate to investor to consider gold-related stocks given as interest for the safe-haven asset strengthened amid the threat of conflict escalation in the Middle East coupled with the rising prospects of potential rate cut in September,” analysts say..