Traditionally, investors and fund managers will continue buying in November in order to present nice account balance during end of the year for their clients.
Since global stock markets retraced from 52 weeks high, it is rational to buy now rather to sell now.
However, since US Fed Reserve hold on the rate hike now and further discuss in December. Will investors and fund managers having the same view as years before to buy for window dressing? Is everyone getting cautious in the market? If it is time to raise rate, why is Fed keep the decision indecisive?
Hang Seng cash market closed at 22640.04 (-179.90), November futures closed at 22684 (-78). Range of the week for futures market was between 22604-23419 (811). Overnight Dow Jones closed -92.26 at 17663.54. For Hang Seng Index, market will open lower on Monday. The first support we see is at 22450, further support is target at 21900. On the upside, any rebound will see market retest 22800- 23000.
For KLCI Index, cash market closed at 1665.71 (-1.27); November futures closed at 1663 (+8). We think there is a chance the support at 1640 will break and goes lower, further support-1615. On the upside, we remain resistant at 1680. Due to 1MDB issues, we think Malaysia market is having obstacles to break above 1800 in near term as investors confidence is the key factor to push up market.
Though investors remain cautious at current market uncertainty, we think it's time to spend time and effort to do some treasure hunt.
No comments:
Post a Comment