In today’s Market Outlook, the FBM KLCI (+0.48%) halted a four-day losing streak, on the back of bargain-hunting activities with more than two-thirds of the key index components advanced. The lower liners also marched higher, while the Industrial Products and Services sector (+0.74%) led the mostly positive sectorial peers, says Apex Research.

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Global Markets Review

US stock markets retreated following the weaker-than-expected Alphabet bottomline that outweighed the stronger sales of Microsoft. The European stock markets extended their gains after a choppy trading session, while Asia Pacific stock markets closed mixed.

Market Outlook

Expectedly, the calmer market conditions on Wall Street lifted the sentiment on the FBM KLCI as the key index recouped all its previous session of losses after China’s government’s proposal to issue sovereign bonds worth 1.0 trn yuan in an attempt to shore up the world second-largest economy. Meanwhile, investors will also be keeping a close watch on Malaysia’s Producer Price Index data to be released later today whereby it had recorded negative readings for the past seven consecutive months. We continue to favour the technology sector that is riding onto the improved semiconductor industry outlook.

FBM KLCI Technical Review & Market Outlook

Technical Commentary on the market outlook: The FBM KLCI rebounded after gaining 6.86 points (+0.48%) yesterday to reclaim the SMA200. However, the index remains below the SMA50. Indicators remained neutral as the MACD Line continued its flattish trend below the zero level, while the RSI rose above 50. Immediate resistances are located around 1,458- 1,464. Support is pegged around 1,424.