Drift Lower in Absence of 1H Window-Dressing Interest

Profit-taking interest returned to drag telco, technology and oil & gas heavyweights lower on Thursday, causing trading momentum to ease on the broader market. The FBM KLCI slipped 6.01 points to close at 1,584.94, off an opening high of 1,592.26 and low of 1,582.31, as losers swarmed gainers 804 to 320 on slower trade totalling 4.23bn shares worth RM3.13bn.

Stronger Supports at 1,565/1,550; Resistance at 1,622/1,632

In the absence of end first-half window-dressing interest, the local market should drift lower on the last trading day for June and the first-half of the year. Stronger index supports are at 1,565, the 100-day moving average level, and 1,550, while immediate resistance is at the early June high of 1,622, with the May high of 1,632 and 1,640 as tougher upside hurdles.

Bargain Genting Berhad & Genting Malaysia

Any further fall on Genting Berhad shares to stronger chart supports at the 200-day ma (RM4.57) or 38.2%FR (RM4.46) should attract bargain hunters ahead of rebound upside to the 76.4%FR (RM4.92), with tough resistance seen at the 11/3/24 high (RM5.20). GENM is also attractive to bargain on weakness for recovery upside to the 50%FR (RM2.67), with the 61.8%FR (RM2.73) and 76.4%FR (RM2.81) as tougher upside hurdles, while key supports are from the lower Bollinger band (RM2.46) and 21/11/22 low (RM2.40).

Asian Markets Slip as Traders Digest Key Economic Data

Stocks in Asia fell on Thursday as traders digest economic data from the region and await a key U.S. inflation reading to gauge the path of monetary policy. Japan’s year-on-year retail sales growth for May came in at 3%, higher than the market forecast of 2%, according to a Reuter’s poll of economists. This compares with a revised 2% growth in April. Separately, China’s industrial profits grew 3.4% year on year from January to May, reaching 2.75 trillion Chinese yuan official data showed Thursday. The country’s industrial profit for the first four months of this year had risen by 4.3%.

Later on Thursday U.S. GDP, European confidence figures, a speech from Australia's deputy central bank governor, and a rates decision in Sweden will be in focus ahead of the first U.S. Presidential debate. In Japan, the Nikkei 225 fell 0.82% to 39,341.54 and the broad-based Topix slipped 0.33% to 2,793.70. In Australia, the ASX 200 fell 0.30% to 7,759.60, while South Korea’s Kospi lost 0.29% to 2,784.06. The Shanghai Composite Index also slipped 0.90% to 2,945.85 and Hong Kong’s Hang Seng index dropped 2.06% to 17,716.47.

Wall Street Subdued Ahead of Inflation Data

Wall Street’s main indexes were little changed overnight as traders looked ahead to fresh inflation data for clues as to when the Federal Reserve will begin to lower interest rates. The Dow Jones Industrial Average inched up by 0.09% to close at 39,164.06. The S&P 500 added 0.09% to finish the session at 5,482.87 and the Nasdaq Composite gained 0.30% to 17,858.68. The choppy trading on Wall Street came as traders seemed reluctant to make significant moves ahead of the release of key inflation data on late Friday. Traders hope the report will show easing pricing pressures that could cement the likelihood the Fed will lower interest rates later this year. Meanwhile, traders are also gearing up for a debate between Democratic President Joe Biden and his Republican rival Donald Trump.

On the U.S. economic front, a report released by the Labor Department showed first-time claims for U.S. unemployment benefits fell by more than expected in the week ended June 22nd. Meanwhile, new orders for U.S. manufactured durable goods unexpectedly crept higher in the month of May. Micron shares slipped more than 7% after the chipmaker issued fourthquarter revenue guidance that was in line with estimates. Semiconductor giant and market bellwether Nvidia also sagged, dipping 1.9%. Walgreens Boots Alliance plunged more than 22% after cutting its full-year outlook and issuing lower-than-expected earnings in the previous quarter.

Source: TA Research - 28 Jun 2024