The significant improvement in technical momentum indicators following last week's rebound indicated that the FBM KLCI may have further upside room this week but the cautious tone and new taxes in Budget 2024, especially the 2% points increase in service tax, could act as immediate term dampeners. Besides, the flaring of tensions between Israel and the Palestinian Islamist group Hamas could add uncertainty to markets and keep investors on the sidelines. Thus, strong follow-through buying momentum and further improvement in trading sentiment are vital to counter profit-taking pressures and support further gains ahead.
On the index, immediate overhead resistance is retained at 1,450, with 1,465/1,470, and the 1,490/1,500 area acting as tougher upside hurdles. Immediate support is fixed at 1,400, with 1,390 and the end June low of 1,370 acting as crucial supports.
As for the stock picks for the week, telco, technology and construction related stocks such as Maxis, TM, Globetronics, VS Industry, MRCB, and UEM Sunrise should attract bargain hunters to accumulate on weakness for recovery play.
Source: TA Research - 16 Oct 2023
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TIMECOMCreated by sectoranalyst | Aug 30, 2024