Market Review: Fluctuations between gains and losses

The FBM KLCI fluctuated between gains and losses before closing 0.2% higher yesterday, driven by gains in Petronas-related heavyweights. The lower liners, however, retreated, while the Construction sector (-1.8%) underperformed amongst the mostly negative sectorial peers.

Read More Business News

Fluctuations between gains and losses

“The local bourse managed to defend the 1,600 psychological level and eked out marginal gains yesterday. Expectedly, the lower liners recovery took a bump as investors booked in recent gains. As we enter towards the quarterly reporting earnings season, we expect sentiment to turn cautious. Still, the positive developments on Wall Street is expected to bring cheer towards to local markets as the widely anticipated interest rate cut may materialise next month.

“Looking ahead, investors will be keeping a close tab onto US inflation data later today. Sector wise, we favour the technology sector, potentially mirroring the gains in Nasdaq overnight. With CPO prices languishing below RM3,700/MT (weakest year-to-date), we expect plantation sector to be downbeat,” says Apex.

FBM KLCI Technical Review & Outlook

The FBM KLCI formed a hammer candle after recouping all its intraday losses as the key index defended the 1,600 psychological level yesterday. Indicators, however, stayed mixed as the MACD Line stayed below the zero level, while the RSI hooked above 50. The next resistance is located at 1,630. Support is envisaged around 1,530.

Global Markets Review

Wall Street took a step forward as the Dow jumped 1.0% after the weaker-than-anticipated PPI data spurred speculation over an interest rate cut in September. European stock markets advanced after recouping all their intraday losses, while Asia stock markets closed mostly upbeat.