CGS-CIMB Research

Bursa market outlook: Prolonged sideways trend

sectoranalyst
Publish date: Thu, 12 Dec 2024, 11:24 AM
CGS-CIMB Research

Most Asian stock markets finished lower on Wednesday ahead of US CPI data release. The local benchmark FBMKLCI (KLCI) lost 5.77pts or 0.36% to end the day at 1,603.20. Healthcare (-1.69%) was the worst performing sector followed by industrial products (-1.25%) and plantation (-1.09%). Gainers were technology (+0.50%), financial services (+0.26%) and REIT (+0.10%). Trading volume tapered off to 2.59bn (down from 2.74bn previously) while trading value eased to RM2.46bn (down from RM2.64bn previously). Market breadth turned negative again as 419 gainers weighed down by 652 decliners.

The benchmark gapped down yesterday and formed a doji-like candle. The index is likely to experience a prolonged sideways trend. As long the KLCI is still supported above the 200-day EMA and the recent double bottom low at 1,587-1,589, the odds are still in favour of the bulls. Otherwise, any close below these lows would likely signal further weakness is possible thereafter as the downtrend from the 1,675-1,684 highs is extending. The next support is seen at 1,574-1,581 (which includes the Jun24 low) followed by 1,565. Any rebound would find the 1,614-1,624 support-turned-resistance level a tough nut to crack (including the 50-day EMA). NOTE: Our portfolio turns into *risk-on mode* this week.

Gainers: 419
Losers: 652
Unchanged: 489

DOW: 44.148.56 (-0.22%)
S&P500: 6,084.19 (0.82%)
NASDAQ: 20,034.89 (1.77%)
FTSE100: 8,301.62 (0.26%)
DAX: 20,399.16 (0.34%)
HSI: 20,155.05 (-0.77%)
STI: 3,792.82 (-0.54%)
KLCI: 1,603.20 (-0.36%)

USD: 4.4327 (0.12%)
AUD: 2.8136 (-0.61%)
SGD: 3.2961 (-0.13%)
EUR: 4.6546 (-0.18%)
GBP: 5.6435 (-0.06%)
JPY: 2.9086 (-0.18%)
CNY: 0.6103 (-0.06%)
HKD: 0.5702 (0.12%)

WTI: 70.29 (2.48%)
Brent: 73.52 (1.84%)
GOLD: 2,718.23 (0.89%)
3rd MONTH FCPO: 4,856.00 (-1.92%)
Msia 10 yr bond yield: 3.7910 (0.03%)
US 10 yr bond yield: 4.2711 (1.06%)
Bitcoin Futures: 103,540 (5.37%)
Source: Bloomberg

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