BELOW are excerpts of viewpoints from two selected research houses on what investors can expect in the day ahead:
Inter-Pacific Research
With buying interest still tepid amid the weak global equity market outlook, Malaysian equities remained on the downtrend at the start of the week to inch closer to the 1,520 level.
At the same time, sentiments were spooked by banks’ exposure to Genting Hong Kong’s cruise business that filed for liquation.
Lower liners and broader market shares also retreated further as market participation continues to thin. Expectedly, market breadth stayed negative.
We think the FBM KLCI will attempt to find support around the 1,520 level following reversal of US equities from their deep slump to end higher overnight.
This could provide some respite to market sentiments that has been on the slide since the start of year.
However, the near-term outlook could also remain guarded over fresh geopolitical concerns in Russia. Also, fiscal tightening concerns remain and this could still leave conditions in the Malaysian equity market fluid for longer.
Therefore, the key index may remain hesitant over the near term even as it attempts to find stability around the 1,520 level as fresh buying could still be measured.
If the level is breached, the next support is at the 1,515-1,517 levels while the resistances are at 1,535 and 1,540 points respectively.
Malacca Securities Research
The FBM KLCI slumped in line with the weaker performance across regional bourses as investors were trading cautiously ahead of the Federal Open Market Committee (FOMC) meeting where the officials will discuss monetary policies such interest rate direction moving forward.
Nevertheless, following the V-shape rebound on Wall Street as most of the stocks were significantly oversold, we expect bargain hunting activities to emerge on the local bourse today, especially within the technology sector.
On the commodity markets, both crude palm oil (CPO) and crude oil price declined but remained firm above the RM5,200/metric tonne and US$86/barrel mark respectively.
The FBM KLCI started the week on a downbeat note with the key index falling below the SMA50 level. Technical indicators remained negative as the MACD Histogram has extended a negative bar while the RSI moved lower from the 50 level.
The next support is located at 1,505 while the resistance is set at 1,570. – Jan 25, 2022
