BELOW are excerpts of viewpoints from two selected research houses on what investors can expect in the day ahead:
Malacca Securities Research
Mild bargain hunting activities took precedence as the FBM KLCI ended the week on a positive tone on bargain hunting in gloves heavyweights. We reckon that a consolidation will be in the picture over the near term amid the lack of fresh leads.
In the meantime, gains will be limited by the rising number of COVID-19 cases that may derail the prospect of V-shaped economic recovery.
Meanwhile, the lower liners are likely to trend higher, owing to the rotational play, while investors will continue to keep an eye on the barrage of corporate earnings releases this week as well as Budget 2021 vote this week.
Following the recovery trend on crude oil prices, we expect the energy sector to garner further trading interest. We also see bargain hunting activities emerging on the healthcare sector as valuations, particularly in gloves manufacturers have turned more appealing.
With the daily EMA9 level remains supported, we reckon the consolidation may take place with gains limited towards the immediate resistances at 1,610, followed by 1,640. Supports are at 1,570, followed by 1,540.
Hong Leong Investment Bank Research
Following last Friday’s 10.1 points technical rebound, the FBM KLCI inched up 4.1 points week-on-week to record its third straight weekly gains.
Following a 141-point rally from 1,452 low, KLCI is envisaged to engage in profit taking consolidation mode with immediate support at 1,584.
A decisive break down below this support would confirm the return of the bearish bias towards 1,555-1,535-1,515 levels.
Stiff resistances remain near 1,600-1,618 levels. A successful breakout above these barriers would spur greater upside towards the 1,640 and 1,669 zones. – Nov 23, 2020
