BELOW are excerpts of viewpoints from two selected research houses on what investors can expect in the day ahead:
Inter-Pacific Research
Malaysian equities managed to end the week virtually unchanged after the FBM KLCI hovered in the negative territory for much of Friday with late buying support shoring up the key index at the end of the trading session.
While conditions were largely mixed, the technology index emerged as the biggest winner for the day, but total losers were still ahead of gaining stocks as trading on many of the lower liners and broader market shares were still insipid.
The near-term market outlook looks to stay indifferent as market players await for fresh catalysts to emerge.
In the interim, concerns over the imposition of a windfall tax and higher stamp duty on share transactions would keep sentiments cautious for longer, thus leaving Malaysian equities mostly decoupled from the performance of overseas indices.
Consequently, local stocks are likely to stay subdued for now as they attempt to find some measure of stability after the market’s negative reaction to some of Budget 2022’s proposals.
The immediate support is at the 1,530 level followed by the 1,520 level. The resistances, meanwhile, are at 1,545 and 1,550 levels respectively.
Malacca Securities Research
The FBM KLCI finished the week with marginal gains on the back of final hour bargain hunting activities, but the broader market sentiment was negative.
We think investors may pay attention to fundamentally solid companies with bright earning prospect prior to the upcoming earnings season such as technology stocks.
Meanwhile, US stock markets rallied as investors cheered the job market recovery and the positive data about COVID-19 pills.
We believe the positive momentum should spill over to local bourse over the longer term.
Commodities-wise, crude palm oil (CPO) price declined, while crude oil price charged higher to close above US$82/barrel at the time of writing.
The FBM KLCI staged a mild rebound after hovering mostly in the negative territory for the entire session.
However, technical indicators remained negative as the MACD Histogram has extended another negative bar while the RSI continued to hover below the 50 level.
The resistance is pegged along 1,550-1,56, while the support is located at 1,520. – Nov 8, 2021
