Sideways as Investors Kept Sidelined

Stocks fell into profit-taking correction mode on Thursday, mirroring regional weakness after U.S. data showed a lack of progress towards the Fed's 2% inflation rate target, raising concerns over its future policy decisions. The FBM KLCI slid 6.76 points to end at the day’s low of 1,597.49, off an early high of 1,608.01, as losers beat gainers 604 to 415 on lower turnover of 2.79bn shares worth RM2.9bn.

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

The local market should trend sideways ahead of the weekend, as the lack of local buying catalysts and US markets being closed for the Thanksgiving holiday will keep investors sidelined. Immediate index 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. Immediate resistance remains at 1,630, next 1,648, followed by the September peak of 1,675.

Bargain SunCon &WCT Holdings

Any price dips in SunCon shares should attract bargain hunters looking for a rebound upside to RM4.73, with next major resistance coming from the 100%FP (RM5.12) and RM5.50 going forward. Immediate support comes from the lower Bollinger band (RM4.21) with stronger support at the 61.8%FR (RM3.83). Similarly, WCT Holdings looks attractive to bargain on dips for recovery to the 50%FR (90sen), with a confirmed breakout to target the 61.8%FR (RM1.00) and RM1.08 ahead, while key supports are at the 38.2%FR (80sen) and the 23.6%FR (66sen).

Asian Markets Mixed Amid Rate, Tariff Worries

Asian markets ended mixed Thursday, as traders were grappling with fresh U.S. inflation data and its implications for Federal Reserve policy along with continued fallout from Donald Trump's tariff pledges. Data on Wednesday showed U.S. consumer spending increased slightly more than markets expected in October but progress on lowering the rate of inflation appears to have stalled in recent months. The lack of success in bringing inflation back to the Fed's 2% target, together with the prospect of higher tariffs on imported goods, could narrow the scope for interest rate cuts next year.

On economic news, the Bank of Korea unexpectedly cut its benchmark interest rate by 25 basis points to 3.0%. Australia’s S&P/ASX 200 jumped 0.45% to a new record close of 8,444.30, while South Korea’s Kospi ended nearly unchanged at 2,506.67. Japan’s Nikkei 225 gained 0.56% to 38,349.06, while the broad-based Topix added 0.82% to 2,687.28. In mainland, the Shanghai Composite fell 0.43% to 3,295.70, while Hong Kong’s Hang Seng Index dropped 1.2% to 19,366.96.

Tech Stocks Lift European Markets

Major European markets finished higher overnight, with technology leading the advance amid hopes that US curbs on chip equipment sales to China may prove lighter than feared. The pan European Stoxx 600 rose 0.46%, the U.K.'s FTSE 100 edged up 0.08% and Germany's DAX climbed 0.85%. France's CAC 40 closed up 0.51%, while Switzerland's SMI ended higher by 0.57%. U.S. markets were closed for Thanksgiving. Shares of ASML and its peers in the European computer chip equipment sector climbed after Bloomberg News reported that looming U.S. restrictions on the Chinese semiconductor industry may be less severe than expected.

Traders were also monitoring inflation data from across the euro zone ahead of the bloc-wide print on late Friday. German consumer prices held steady in November, defying economists’ expectations for a slight increase, while Spanish inflation rose from 1.8% to 2.4%. Separately, Eurozone lending to the private sector increased in October at a steady pace, data published by the European Central Bank showed. The volume of business remained thin in most of the markets in the region due to Thanksgiving holiday in the U.S.

Source: TA Research - 29 Nov 2024