BELOW are excerpts of viewpoints from two selected research houses on what investors can expect in the day ahead:
Inter-Pacific Research
Market conditions remained dour yesterday with the key index still on the downtrend only to find support at the 1,520 level.
For the most part, the key index lingered within a tight range but was mostly lower as new leads were still far and in-between as well as trending in line with the weakness in regional bourses.
As a result, market breadth stayed negative with many of the lower liners and broader market shares also retreating due to the lack of buying support.
Despite remaining oversold, there are still few signs of a rebound among Bursa Malaysia stocks as yet.
The weak buying interest, coupled with the lack of noteworthy leads and the prevailing cautious market undertone, will likely keep sentiments fragile for the time being.
In addition, market players are waiting for the 3Q 2021 GDP (gross domestic product) to be released tomorrow to gauge the state of the country’s economy.
Therefore, market players are likely to remain on the sidelines until there are further signs of market recovery before making a return.
In the interim, the key index could drift further due to the weak buying interest, leading to the 1,520 level giving way with the next support pegged at 1,515 points.
Thereafter, the psychological 1,500 support will come into play. Meanwhile, the hurdles are at 1,530 and 1,535 points respectively.
Malacca Securities Research
The FBM KLCI ended lower for the second day and may continue to perform on a weaker tone due to rising concerns over inflationary pressure following the release of higher-than-expected producer price index in China.
Also, with the negative performance on Wall Street overnight, especially within the technology sector, selling interest may spill over onto the local front at least for the rest of the week.
Market players will be monitoring and deploying a wait-and-see strategy ahead of Malaysia’s 3Q 2021 GDP data.
Commodities-wise, crude palm oil (CPO) price rebounded but is still below the important RM5,000 level while crude oil price dropped below US$85.
The FBM KLCI sank after hovering mostly in the negative territory, forming another negative candle below the 1,530 level. Technical indicators remained negative as the MACD Histogram is still negative while the RSI hovered below the 50 level.
Based on the technical readings, the downside risk may take the FBM KLCI towards 1,500-1,510 zone. Resistance is located around 1,540-1,550. – Nov 11, 2021
