BELOW are excerpts of viewpoints from two selected research houses on what investors can expect in the day ahead:
Inter-Pacific Research
The FBM KLCI dipped into the negative territory yesterday following the lack of fresh impetus to motivate buying interests and light trading volumes.
Meanwhile, the broader market gains were mostly supported by a sizable comeback of retail interest in selected cyclical sectors.
For now, we think that quick profit-taking will continue, taking cue from Wall Street which closed in the red on fading prospects for a bigger stimulus cheques to individuals.
In the near-term, investors are also likely to retreat to the sidelines ahead of the holiday-shortened week and extended selling pressure from institutional funds.
As such, the 1,650 level is the resistance level followed by the 1,660. The immediate supports, on the other hand, are at the 1,631 level.
Malacca Securities Research
Wall Street ended in the negative territory after hitting the record highs throughout the session. This may set a mixed tone on the local front, but the FBM KLCI could be supported by mild window dressing activities.
On the broader market, traders could focus on the automotive segment on the back of the sales and service tax (SST) exemption extension until mid-2021.
Meanwhile, crude palm oil price remains firmly on the upward trend (RM3,550 as of yesterday closing). Also, we believe traders may anticipate that the Large Scale Solar 4 (LSS4) contracts could be awarded by 1H 2021.
The FBM KLCI continues to consolidate within the range of 1,620-1,640. Meanwhile, the Histogram indicator is still recovering in the negative region, while the RSI oscillator is hovering above the 50 level, suggesting that the positive momentum is still intact.
Hence, we expect the FBM KLCI could remain above its support along 1,620. Resistance is located around 1,660-1,680. – Dec 30, 2020
