Range Bound as Investors Await Key Data

Blue chips rose on Monday, mirroring the optimism on Wall Street for more business-friendly policies following president-elect Donald Trump’s nomination of prominent hedge fund executive Scott Bessent as U.S. Treasury secretary. The FBM KLCI gained 7.67 points to close at 1,597.45, off an early low of 1,588.46 and high of 1,609.229, but losers edged gainers 540 to 501 on total turnover of 3bn shares worth RM5.39bn.

Resistance at 1,630/1,648; Support at 1,588/1,565

Stocks should stay range bound after yesterday’s strong rebound, as investors await the release of key economic data from the region this coming week. Immediate index resistance remains at 1,630, next 1,648, followed by the September peak of 1,675. Immediate support stays at 1,588, the 38.2%FR of the 1,529 low (6 Aug) to 1,684 high (29 Aug) rally, with stronger key supports at 1,565, the 23.6%FR level, and then 1,550.

Sell Rally Bumi Armada & Bargain Hibiscus

Further strength on Bumi Armada towards resistance at the 76.4%FR (63sen) should meet strong profit-taking interest, with overbought technical momentum to limit upside potential, while downside should be cushioned by the 50%FR (52sen) and 38.2%FR (48sen) levels. Meanwhile, Hibiscus will need decisive breakout above the 76.4%FR (RM2.10) to fuel further upside towards the 61.8%FR (RM2.25) and 50%FR (RM2.37) ahead, with key chart supports from the 09/11/24 low (RM1.87) and RM1.80 cushioning downside.

Most Asian Markets Higher Ahead of Key Economic Data

Stocks in Asia were mostly higher on Monday, as traders switched focus to key economic data from the region and welcomed Donald Trump’s pick of Scott Bessent for Treasury Secretary. In Singapore, the country saw its headline inflation rate fall to 1.4%, the lowest rate of inflation since March 2021. Looking ahead, October inflation readings from Australia are due Wednesday, and November inflation numbers from Japan’s capital city of Tokyo will be released on Friday. Separately, traders looked ahead to the release of key U.S. economic data later in the week, including readings on consumer price inflation preferred by the Fed.

Meanwhile, traders also cheered the appointment of fund manager Scott Bessent as the next U.S. Treasury secretary, figuring he would be a voice for markets in Washington. Japan’s Nikkei 225 jumped 1.30% to 38,780.14, while the broad-based Topix added 0.71% to 2,715.60. In Australia, the ASX 200 gained 0.28% to 8,417.60 and South Korea’s Kospi jumped 1.32% to 2,534.34. In the mainland, the Shanghai Composite slipped 0.11% to 3,263.76, while Hong Kong’s Hang Seng Index lost 0.41% to 19,150.99.

Wall Street Closes Higher on Trump’s Treasury Pick

Wall Street's main indexes rose overnight amid optimism over President-elect Donald Trump's choice of Scott Bessent for Treasury secretary. The Dow Jones Industrial Average rose 0.99% to close at 44,736.57. The S&P 500 gained 0.30% to 5,987.37, while the Nasdaq Composite added 0.27% to 19,054.83. The continued strength on Wall Street comes amid a positive reaction to news President-elect Donald Trump intends to nominate billionaire hedge fund manager Scott Bessent as Treasury Secretary. Bessent is seen as supportive of the equity markets and an advocate for deficit reduction. He has also called for Trump's planned tariff increases to be implemented gradually, which could reduce the impact on inflation.

However, traders seem reluctant to make more significant moves ahead of the release of several key economic reports in the coming days. A report on personal income and spending for the month of October is likely to be in the spotlight, as it includes the Federal Reserve's preferred inflation readings. Minutes from the Fed’s most recent policy meeting are also due out ahead of Thanksgiving. Energy stocks fell along with oil prices as hopes increased for a ceasefire agreement between Israel and Hezbollah.

Source: TA Research - 26 Nov 2024