THE FBM KLCI ended flattish as uncertainty arose following the recent release CPI data. On the other hand, the lower liners rebounded, while the technology sector was the biggest outperformer among the sectoral peers.

“Wall Street’s rally gained momentum as investors continued to snap up the “Magnificent 7” technology stocks following the recent sell-off, while the recent batch of economic data remains in favour of a 25 basis points rate cut next week,” said APEX Securities Bhd in the recent Daily Highlights report.

European and Asia markets both closed higher, with the former boosted by a 25 basis points rate cut from the ECB, and the latter lifted by a tech rally on Wall Street. 

While FBM KLCI took a breather yesterday due to persisting profit taking activities, the selling pressure appears to have eased.

The lower liners enjoyed a decent run as trading sentiment was uplifted by strong expectations of a rate cut next week. 

Economic wise, investors will be keeping a close tab on the release of EU industrial production data as well as US Michigan consumer sentiment tonight. 

“In terms of sectors, we hold a bullish outlook on commodities-related stocks, particularly for gold and aluminium as commodity prices remain elevated. We also anticipate buying interest in the technology sector that is expected to mirror the positive performance on Nasdaq,” said APEX.

The FBM KLCI remained downbeat after erasing all its intraday losses in the final trading hour yesterday.

Indicators turned negative as the Moving Average Convergence Divergence Line hovered below the Signal Line, while the RSI tripped below 50. Immediate resistance is located at 1,700. Support is envisaged around 1,630. - Sept 13, 2024

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