BELOW are excerpts of viewpoints from two selected research houses on what investors can expect in the day ahead:
Inter-Pacific Research
Once again, the key index made little headway as fresh buying interest remains thin despite the prospects of an early General Election following the Melaka state election.
As it is, there were still few leads to draw market players and as a result, traded volumes continue to fall by slipping to just 2.45 billion shares – its lowest in 2021.
The broader market was also directionless and became broadly lower to result in losers still overwhelming gainers for the day.
With a lack of market impetus, this could leave the market directionless over the near term.
Fresh buying interest remain anaemic with the ongoing results reporting not providing the much needed catalysts to attract more market players back to the market.
Therefore, the wait-and-see stance is likely to prolong and keep the FBM KLCI trapped within a tight range for the time being, hovering between the 1,520 and 1,530 levels over the near term.
The other support and resistance levels are at 1,515 and 1,540 points respectively.
Malacca Securities Research
The FBM KLCI ended marginally higher after the Melaka state election but the upside was limited given the concerns over a resurgence in COVID-19 cases globally.
Tracking the overnight negative performance on Wall Street, we could expect the selling pressure to spill over onto the local front, specifically hitting technology stocks.
Meanwhile, we noticed that foreign funds have been selling local equities over the past two trading days and this may dampen the sentiment further.
Given such set-up, market players will be focusing on the ongoing earnings season, while the key index may extend its consolidation mode without any fresh catalyst.
Crude palm oil (CPO) price remained on a high note above RM4,900, while crude oil price hovered above the US$78/barrel mark.
The FBM KLCI rebounded marginally but still range-bound below the daily EMA9 level. Technical indicators remained negative as the MACD Histogram has extended a negative bar, while the RSI hovered below the 50 level.
The FBM KLCI’s support is at 1,520 while the resistance is pegged along 1,540-1,550. – Nov 23, 2021
