BELOW are excerpts of viewpoints from two selected research houses on what investors can expect in the day ahead:
Inter-Pacific Research
The emergence of a new COVID-19 variant sent Malaysian equities lower for a fourth straight session to end the week below the 1,520 level for the first time since August this year.
Amid the selling pressure, traded volume shot up to 4.9 billion shares on Friday, its highest in a more than a month.
Most stocks retreated, especially the lower liners, resulting in losers outpacing gainers by 4:1.
However, glove maker stocks emerged big movers as the new variant could drive up demand.
The near-term outlook will still be dictated by developments of the new COVID-19 variant with the downside bias likely to remain on Bursa Malaysia for the time being given that there are significant unknowns on the new variant.
This could cause more market players to opt for reducing their exposure to equities amid the prolonged wariness over direction and possibility of sentiments staying subdued for a longer period
Fresh buying interest would also remain low, leaving key index to drift lower even as there could be some mild bargain hunting activities after the recent sell-down.
With the 1,520-level giving way, the 1,500 level is now the psychological support. Below that, the main support is pegged at 1,490 points while there is an interim resistance is at the 1,515 level.
Beyond 1,520 points, the other hurdle is at 1,525 points.
Malacca Securities Research
The FBM KLCI swung lower for the fourth straight session amid concerns over the new Omicron COVID-19 variant; foreign investors stayed as net sellers by pulling out RM42.8 mil from the local bourse on Friday.
The worries on the emergence of the new COVID-19 variant may result in a mixed sentiment as data such as infectivity and mortality rate can only be known by another one to two weeks.
In the meantime, tracking the mild rebound in overseas futures at the point of writing, there is a slight chance for a technical rebound today but upside will be capped as COVID-19 concerns remain valid.
Commodities-wise, crude oil price dropped over 11% as the market worries that current COVID-19 conditions may eventually result in oil supply surplus (crude palm oil also fell).
The FBM KLCI declined further away from the 1,520 support level following Friday’s sell-down. Technical indicators remained negative as the MACD Histogram has extended a negative bar while the RSI hovered below the 50 level.
The next support level is pegged at 1,500, while the resistance is pegged along 1,535-1,560. – Nov 29, 2021
