BELOW are excerpts of viewpoints from two selected research houses on what investors can expect in the day ahead:
Malacca Securities Research
Following the strong hammered down situation on the local front, we expect the sentiment to remain more negative over the near term without any significant positive fresh leads in the market.
Nevertheless, with the Wall Street still in the upward trending tone, buying interest might spill over to technology stocks on the local front.
Still, we expect mild bargain hunting activities to emerge once market is able to look beyond Cukai Makmur and the contract notes stamp duty going forward.
Commodities-wise, crude palm oil (CPO) price is hovering below RM5,000 level, while crude oil price was mildly higher.
The FBM KLCI closed significantly lower during the post-budget session, turning into a downtrend formation. The MACD Histogram has expanded lower while the RSI is below 50.
We believe the FBM KLCI could consolidate within the support zone between the 1,515-1,530 levels. Meanwhile, resistance will be located around 1,550-1,560.
Hong Leong IB Research
Unless it is able to stage a strong reclaim above the 1,545-1,562 gap down, we expect the FBM KLCI to extend its consolidation this week as investors continue to digest the sentiment-damaging prosperity tax and higher stamp duty rate.
Nevertheless, severe downside risk may be cushioned near the 1,483-1,500-1,515 zones by aggressive economic re-opening activities with more states moving to Phase 3 and 4 of the National Recovery Plan, high vaccination rate (circa 96% of the adults had fully vaccinated as of Oct 31) and elevated commodity prices. – Nov 2, 2021
