BELOW are excerpts of viewpoints from two selected research houses on what investors can expect in the day ahead:
Inter-Pacific Research
Key index stocks retreated last Friday after its outperformance earlier in the week. However, the pullback was seen as mild and barely dented the key index’s overall improved sentiments.
Elsewhere, conditions were mixed with the lower liners and broader market shares also seeing mild profit taking actions, but bouts of support cushioned the pullback. Despite the mixed market conditions, traded volumes picked up on increased interest among the lower liners.
With sentiments largely intact, we think that the broadly positive market conditions are likely to remain that could help to shore up the FBM KLCI at the start of the week.
We also see the market supported by the bouts of month-end window dressing activities that should leave the key index in the positive territory for the year, much of it riding on the firming market undertone as potential COVID-19 vaccines are nearer to being introduced.
However, after the strong gains over the past month, further upsides may become more measured as short-term catalysts are scant following the end of the results reporting season.
With gains likely to be milder, the resistances are at 1,612 and the 1,618-1,620 levels over the near term followed by the 1,626 level. The immediate support is at the 1,600 points level followed by the 1,590 level.
Malacca Securities Research
After delivering a two consecutive days of solid performance, mild profit activities set onto course as the FBM KLCI staged a mild pullback on last Friday.
Still, we maintain our positive tone on the local bourse as investors will continue to pin their expectations over the economic recovery following the recent batch of corporate earnings that appears to have bottomed-out.
The lower liners may continue to edge higher, largely supported by the liquidity-driven momentum as investors continue their quest for higher yields.
We reckon that the plantation sector may march higher, premised on firmer crude palm oil prices as demand remain relatively strong. With the COVID-19 vaccine development and distribution edging closer, vaccine-related stocks may also continue to garner increase trading interest.
With the 1,600 level remain supported (followed by 1,570), we think that further upsides are still in the cards with the immediate resistance at 1,640 followed by 1,670. – Nov 30, 2020
