rakuten trade market reports : Page 18

According to Trump, the US is “very close” to a deal with China thus averting full imposition of tariffs on Chinese goods due by this weekend. Assuming this is true, global markets for once may enjoy some degree of clarity.
Meanwhile, the thumping win for the Conservatives in the just concluded UK election seems to have added more clarity from there as well. Locally, we expect buying momentum to persists with the FBM KLCI continuing with the uptrend.
The benchmark index is expected to breach the 1,570 today with immediate resistance at the 1,575 level.

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Indication from the Federal Reserves that rates will remain indefinitely induced some profit takings on treasuries with the US 10-year yield touching 1.80% from 1.75% before.
We would expect bonds to experience some selling pressure going forward thus may see the same on the MGS. Meanwhile trading on equities are anticipated to remain nonchalant with the US China trade talk still undecided.
Locally, we expect another flattish day with the FBM KLCI looking to re-test the 1,565 mark as chances for a shift in portfolio adjustments from bonds to equities are highly likely.

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As the US China tariff deadline looms, we will not be at all surprised that another extension could be in the offing. Nonetheless, the silence of any affirmative indicators should continue to put investors in a nervy state.
As such we anticipate it will be another flattish trading day ahead with the FBM KLCI looking to break the 1,565 level.
Buying interests on plantation stocks may persists buoyed by the strong CPO price which had surpassed the RM2,900/MT mark. We have identified a few laggards like IOI Corp, NSOP, MHC Plantation and PLS Plantation.

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Regional markets were mixed thus pulling down the FBM KLCI which saw further bouts of selling yesterday.
With 2019 almost coming to an end, we reckon the benchmark index may languish at current levels finding it hard to even break the 1,600 mark.
The absence of fresh foreign funds into the local bourse will continue to plague any chance of the FBM KLCI making a commendable comeback.
Therefore, we believe the index may close the year below the 1,600 level as there are no signs of strong buying catalysts. Meanwhile, we caution on the recent uptrend of the CPO price as the discount against the soy price is narrowing to below its 5-year average.

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Buoyed by improving US economic data, investors risk appetite also improved as many switched their attention to equities. As a result, Wall Street saw solid gains last week which we believe will ripple across Asia as well.
For today, we reckon the FBM KLCI will continue with its uptrend following days of selling pressure and expect the benchmark index to hover between the 1,575/80 levels.
Supported by renewed optimism over the CPO price, we may continue to see buying interests on plantation related stocks to remain in particular for the small and mid caps.
In addition, we are confident that buying interests may return to construction related stocks as we anticipate the commencements of mega infra related projects to be rather soon.

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