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 lose ground last Friday with selling still the dominant trend to leave the key index at its lowest level in about 10 days.
Market conditions were further affected by the weakness is regional equities, spooked by China’s increasing economic woes and hesitation in many Western markets amid mounting inflationary concerns.
Selling also became overwhelming as losers beat gainers by nearly three times with foreign funds remaining net sellers.
Overall market conditions remain cautious even as the country moves closer to the full re-opening of its economic sectors as the insipid undertone still prevails and could leave most market players on the sidelines.
In addition, global economic recovery may also stall due to runaway prices that may prompt central banks to rein-in on their stimulus measures earlier-than-anticipated.
The key index may attempt to find a new base around the 1,520 level following its recent pullback that has wiped out most of the gains attained in the August run-up.
Selling may also look to ease as mild bargain hunting could emerge after last week’s weakness, but gains could be met by sustained selling that would leave the rebound mild at the start of the week.
Below the 1,520 level, the other support is around the 1,515 level while resistances are at 1,530 and 1,543 points respectively.
Malacca Securities Research
The FBM KLCI ended the week in the negative territory, mirroring the overnight losses in Wall Street on the back of inflation fears as well as the regional weaknesses.
Entering the final quarter of 2021, investors may expect for further economic recovery as the Government eyes international border re-opening in December as well as inter-state travelling to resume once 90% adults have been fully vaccinated (currently stood at 87.6%).
Commodities-wise, crude oil price advanced while crude palm oil (CPO) price retreated.
The FBM KLCI extended its losses on Friday, moving further away from the daily EMA9 level. Technical indicators remained negative as the MACD Histogram has extended a red bar, while the RSI continued hovering below the 50 level.
Resistance is envisaged at 1,550-1,560 while the support is located at 1,515. – Oct 4, 2021
