Range Bound Pending Budget 2025 Release

The local market rebounded on Thursday, aided by gains in property, banking and plantation stocks, on hopes that Budget 2025 will contain measures to boost the domestic property market. The FBM KLCI gained 8.81 points to close at 1,641.44, off an early low of 1,633.72 and high of 1,642.93, as gainers led losers 634 to 391 on total turnover of 2.68bn shares worth RM2.45bn.

Resistance at 1,660/1675; Support at 1,625/1,620

The broader market should extend range bound trade pending the unveiling of Budget 2025 proposals by late afternoon, with buying interest to focus on sectors seen to benefit. Immediate index resistance remains at 1,660, followed by the recent highs of 1,675 and 1,684, and then 1,695, the Dec 2020 high, as tougher resistance levels. Immediate support will be the recent correction low of 1,625, with 1,620 and then 1,600 acting as stronger supports.

Bargain Axiata & CelcomDigi

Axiata will be attractive to bargain on weakness for rebound upside, with a confirmed breakout above the 200-day ma (RM2.54) to target the 61.8%FR (RM2.64) and 76.4%FR (RM2.77) ahead, and key chart supports from the 23.6%FR (RM2.29) and 31/10/23 low (RM2.08). CelcomDigi looks ideal to accumulate at current levels with the 38.2%FR (RM3.51) and 23.6%FR (RM3.31) to cushion downside, while a breakout above the 50%FR (RM3.68) should aim for the 61.8%FR (RM3.85) and 76.4%FR (RM4.05) going forward.

Asian Markets Slip as China Stimulus Optimism Fades

Asian markets were lower on Thursday, as a much-anticipated joint ministry briefing on supporting China’s property market offered few new stimulus measures. China vowed more financial support for real estate projects that fall under its so-called “whitelist” and to speed up banks’ lending of 4 trillion yuan (USD561.8 billion) for such projects, according to the nation’s housing ministry. Ni Hong, China’s minister of housing and urban-rural development, delivered the remarks at a press conference on Thursday. Nonetheless, there was no new gesture to excite markets about a meaningful revival for a sector where a crackdown on developers' borrowing has set off a wave of defaults. On economic front, Japan’s exports fell1.7% in September compared to the same period last year, surprising economists polled by Reuters who expected a 0.5% growth rate.

Separately, Australia’s unemployment rate for the month of September came in at 4.1%, slightly down from a Reuters poll that forecasted it to remain unchanged from August at 4.2%. The Shanghai Composite Index dropped 1.05% to 3,169.38, while Hong Kong’s Hang Seng Index slipped 1.02% to 20,079.10. Japan’s Nikkei 225 also fell 0.69% to close at 39,911.19 and the broad-based Topix slipped 0.11% to finish at 2,687.83. South Korea’s Kospi closed nearly unchanged at 2,609.30 and Australia’s S&P/ASX added 0.86% to 8,355.90.

Source: TA Research - 18 Oct 2024