BELOW are excerpts of viewpoints from two selected research houses on what investors can expect in the day ahead:
Inter-Pacific Research
The key index lost all of its gains from a day earlier as market sentiments remained affected by the announcement of a one-off windfall tax in Budget 2022.
At the same time, there were also few positive leads to sooth market concerns and this resulted in widespread selling to continue.
We see market conditions remaining dour as sentiments are still weak with the market still attempting to find a firm footing after the unveiling of Budget 2022 that provided few giveaways to the business sector.
Market players are also wary over the impeding hike in stamp duty for share transactions that could prolong the market’s cautious mode.
Under the prevailing environment, the key index could still drift lower to end the week on an insipid mode as fresh buying interest remains thin.
This may see the key index slipping further to around the 1,525 level before re-testing the 1,500-1,520 levels. On the other hand, the resistances are at 1,540 points and the psychological 1,550 points.
Malacca Securities Research
The Fed’s move to begin tapering this month is within consensus expectations while the overall market condition in the US is still positive, especially on Nasdaq.
Hence, we expect the positive sentiment to spill over to tech stocks on the local front.
However, broader market sentiment could have limited upside potential as investors are still digesting the impact from “Cukai Makmur” and stamp duty changes moving into 2022.
Meanwhile,
On the commodity markets, meanwhile, crude palm oil (CPO) managed to charge above RM5,000/metric tonne while Brent oil has traded in a volatile manner by hitting the intra-day high of US$84.48/barrel before declining near the US$81/barrel at the time of writing.
This comes as Saudi TV reported that Saudi Arabia’s oil output may surpass 10 million barrels per day following easing of the COVID-19 pandemic.
Following the significant decline on Monday and the mild bargain hunting activities, we think the market may turn into consolidation phase.
Technical readings are still negative with the MACD Histogram extended another negative bar while the RSI is below 50.
The resistance is located around 1,550-1,560. Support is pegged around 1,520. – Nov 5, 2021
