BELOW are excerpts of viewpoints from two selected research houses on what investors can expect in the day ahead:
Inter-Pacific Research
Malaysian stocks retreated once again with pandemic concerns sending equities lower and reversing the gains they attained a day earlier.
Selling was especially pronounced among the index heavyweights as foreigners become the main sellers again even as traded volumes slipped below the four billion shares level for the day.
Elsewhere, lower liners and broader market shares also saw their prices retreating, resulting in the total losers outpacing gainers by more than a two-to-one ratio.
The near-term outlook remains frail, affected by continuing concerns over the Omicron variant and the stubbornly high global inflation rate.
As market sentiments are also turning warier with many global indices retreating, selling is likely to sustain on Bursa Malaysia.
In addition, the FBM KLCI’s outlook is further clouded by its inability to hold on to the 1,500 psychological level. This could prompt further selling as more market players could opt to retreat to the sidelines.
Under the prevailing market environment, the FBM KLCI’s immediate support at 1,490 may not even hold with the key index potentially re-testing the 1,480 level due to increased selling pressure.
In the meantime, the main resistance remains at 1,500 points followed by the 1,510 level.
Malacca Securities Research
The FBM KLCI tumbled below the psychological 1,500 level as the market reacted to developments surrounding the COVID-19 Omicron variant as well as overnight selldown on Wall Street following more hawkish comments from Jerome Powell.
We believe volatility may remain on the local bourse, taking into account the Government’s decision to bar travellers from eight countries with confirmed cases of the COVID-19 Omicron variant and tracking the negative performance from Wall Street.
Nevertheless, downside may be cushioned by the improved Malaysia’s November Purchasing Manager Index (PMI) which signalled improved operating condition.
Commodities-wise, crude oil price remains soft but crude palm oil (CPO) price staged a mild rebound.
The FBM KLCI reversed Monday’s rebound to close below the significant 1,500 support level. Technical indicators remained negative with the MACD Histogram extending a negative bar while the RSI hovered below 50.
The next support level is located at 1,480 while the resistance is pegged along 1,515-1,530. – Dec 2, 2021
Pic credit: Global Financial Data
