The FBM KLCI (-0.18%) closed lower despite the positive regional markets, as the index was dragged by laggards such as PCHEM (-9.0 sen), CIMB (-3.0 sen) and MAXIS (-4.0 sen).
On the broader market, the Healthcare sector (+1.87%) rose, while the Energy sector (-1.60%) declined amid the fall in crude oil prices.
At 9.41am, the FBM KLCI opened at 1455.67.
RHB Retail Research Market Dateline said today (Nov 24) that the FKLI’s movement persisted with its pullback yesterday, dragging 4.5 pts to settle at 1,453 pts – still above the immediate support level of 1,450 pts.
While it opened at 1,468.50 pts, its movement fell towards the 1,451-pt low before the close.
The second consecutive session of strong pullbacks suggests the index is retracing sharply towards the 1,450 pts immediate support, indicating a short-term price weakness.
With the RSI weakening towards the 50% level, we think the FKLI’s movement may trade sideways near the immediate support in upcoming sessions.
However, the medium-term outlook stays bullish, characterised by the rising 50-day SMA line and “higher low” bullish structure above that line. Based on the medium-term outlook, we maintain a positive trading bias.
The Day Ahead
Malacca Securities (MSSB) said the FBM KLCI headed lower for the session, bucking the overall positive momentum shown on the global stock markets. Meanwhile, the US stock markets were closed for Thanksgiving holiday.
Although MSSB may anticipate that the trading activities to be slower throughout the Asia trading hours, upside could emerge with the expectation that Beijing would boost policy support to aid the failing sector, where China may allow banks to offer unsecured short-term loans to qualified developers for the first time.
This may spur the upside move on the local equities and traders will focus on the ongoing reporting season.
On the commodity markets, the Brent oil prices declined near the USD81/bbl as concerns over demand persisted amid rising US inventories and the next OPEC+ meeting will be on 30th Nov.
Sector focus: Based on the momentum that has built up over the past few days, MSSB expects the Healthcare sector to stay in the active list with further continuation of buying interest ahead of the release of Supermax’s results.
Meanwhile, MSSB believes the results from Genting-related and YTL-related are solid and could provide trading opportunities within the Tourism and Utilities sectors. Besides, MSSB still favours the Property, Building Material, Construction, and Transportation
