BELOW are excerpts of viewpoints from two selected research houses on what investors can expect in the day ahead:
Inter-Pacific Research
Profit taking activities emerged to leave the key index lower yesterday as well as snapping its streak of gains. Banking stocks which gained over the past few sessions succumbed to profit taking and were the main losers.
Conditions elsewhere, however, remained mostly positive with many of the lower liner and broader market indices sustaining their gains albeit milder, thus enabling market breadth to stay positive.
Traded volumes were little changed from a day earlier.
The last trading day of the year is likely to see market conditions remaining steady with few noteworthy leads for market players to follow and the participation rate is also likely to stay on the low side.
Consequently, stocks could drift further and trend within a tight range for most of the day. However, we do not discount the possibility of a last-minute lift on selected index heavyweights that would allow the key index to end the year at the 1,550 level.
Meanwhile, the re-introduction of a capping to the equity stamp duty starting next week could provide some reprieve to market players and may help to bolster sentiments.
Apart from the 1,550 resistance, there is an interim resistance at 1,547 points while the supports are at 1,540 and 1,535 points respectively.
Malacca Securities Research
We believe the year end window dressing should sustain the current rebound momentum.
Also, with both Bursa Malaysia and the Finance Ministry (MOF) having adjusted the share trading stamp duty charges with a capping of RM1,000, we expect this to bring cheer to market players in 2022.
Meanwhile, persisting uncertainties surrounding the Omicron COVID-19 variant might encourage short-term trading activities on healthcare stocks.
Nevertheless, we believe market participants will put more attention on recovery theme sector as we view the Omicron impact to not contribute to a full lockdown at least for the near term.
The FBM KLCI (-0.1%) has retraced and registered mild losses after the recent rebound. Technical indicators remained positive as the MACD Histogram has extended a positive bar while the RSI is hovering above the 50 level.
The resistance is located at 1,560 while the support is envisaged along 1,520-1,530. – Dec 31, 2021
