BELOW are excerpts of viewpoints from two selected research houses on what investors can expect in the day ahead:
Inter-Pacific Research
Malaysian equities continue to make headway with rotational buying into banking and plantation stocks providing much of the lift yesterday and bucking the mixed trend on regional markets that were waiting for the US’ mid-term elections results.
Similarly, lower liners and broader market shares also made minor gains as market activity picked up pace with traded volumes staying above the 3 billion mark. This helped gaining stocks to just pip losing ones for the day.
We continue to think that the key index will remain mostly range-bound as market players are waiting for more cues from the ongoing results reporting season before deciding on their next course of action.
The country’s third quarter GDP to be released tomorrow (Nov 11) will also be monitored as a gauge into its outlook for the rest of the year and into 2023.
As such, the FBM KLCI will continue to trend within the 1,440-1,450 points for the time being although there could be quick profit taking following the weakness on Wall Street overnight.
However, any selling is likely to be mild as there are still bouts of buying support that will sustain the key index above the immediate support of 1,440 points. Below this, the supports are at the 1,435-1,438 levels while the immediate resistance is at the 1,450 level, followed by the 1,455 level.
Malacca Securities Research
The FBM KLCI rose marginally as the market appeared to be on a bargain-hunting mode amid persistent inflows of foreign funds.
However, we believe the downside risk could return with the selling pressure on Wall Street as the US mid-term election results are uncertain and that the US CPI (consumer price index) may stay elevated and contribute to a selling tone in the near term.
Commodities-wise, Brent crude price declined further towards the US$92-US$93/barrel mark as the rising US crude stockpiles coupled with ongoing COVID-19 curbs in China dampened pricing. Meanwhile, crude palm oil (CPO) price also trended lower, trading just below RM4,250/metric tonne.
The FBM KLCI drifted sideways and hovering around the EMA60 level. Technical indicators, however, remained mixed as the MACD Histogram extended a negative bar while the RSI hovered above 50.
The resistance is set along 1,465-1,480 while support is located at 1,410-1,420. – Nov 10, 2022
