BELOW are excerpts of viewpoints from two selected research houses on what investors can expect in the day ahead:
Inter-Pacific Research
There was still little reprieve for Malaysian equities as the downside pressure sent most stocks lower last Friday, extending the key index’s losing streak for a sixth day.
Market sentiment remained indifferent amid the lack of leads with glove maker stocks slipping further after Top Glove Corp Bhd reported lower earnings.
Although technology stocks bucked the weaker trend, conditions elsewhere were insipid with broader market shares also retreating, leaving losers still ahead of gainers for the day.
We still see market sentiment remaining dour and this could prolong the market’s uncertain outlook over the near term.
As it is, there remain few catalysts for market players to follow with talks of a windfall tax and interest waiver for loans moratorium also looking to leave a cautious undertone until there is further clarity on the issues.
This could also mean Malaysian equities could drift further, particularly after it slipped below the 1,550 support-turned-resistance level last Friday as we still see most market player treading cautiously.
The supports are now pegged at 1,540 and 1,533 points respectively while the other resistance is at the 1,560 level.
Malacca Securities Research
The FBM KLCI finished the week lower last Friday as foreign funds turned into net seller with net selling amounting to RM72.6 mil, snapping four-day of inflow
However, the local bourse may see bargain hunting activities emerging on the back of declining daily COVID-19 confirmed cases, while waiting for Malaysia’s inflation rate that will be released this Friday.
Meanwhile, both the crude palm oil (CPO) and crude oil price declined, while the Baltic Exchange Dry Index rose to 4,275, its record high since 2009.
The FBM KLCI extended its losses, falling below the daily EMA60 level on Friday. Technical indicators remained negative as the MACD Histogram has extended another red bar while the RSI continued hovering below the 50 level.
The next support level is located at 1,535 while the resistance is pegged along 1,580-1,600. – Sept 20, 2021
