BELOW are excerpts of viewpoints from two selected research houses on what investors can expect in the day ahead:
Malacca Securities Research
The FBM KLCI was traded in a lacklustre manner as the key index re-tested the 1,600 psychological level.
As there was absence of follow-through buying beyond the aforementioned level, we reckon that the local bourse will be poised for further consolidation.
At the same time, the uncertainty surrounding the vote on Budget 2021 are also keeping investors on their toes. The lower liners are looking increasingly toppish which may prompt profit taking activities over the near term.
The FBM KLCI hovered mostly in the positive territory before finishing mildly higher yesterday as the key index remain above the daily EMA9 level. The lacklustre movement may bring further consolidation into the picture with the immediate resistances located at 1,610, followed by 1,640. Supports are at 1,570, followed by 1,540.
Inter-Pacific Research
Malaysian heavyweights continue to tip higher, inching closer to the 1,600 points level as the positive COVID-19 vaccine buoys sentiments further – much of it due to rotational play on oil & gas stocks after oil prices rose to their highest level in some two months on optimism that demand will rise in tandem with the economic recovery.
While index linked stocks gained, the lower liners and broader market shares dithered, however, as their broadly sideway trend persisted with overall volumes remaining above average.
Despite the improving global equity sentiments, we think conditions on Bursa Malaysia will remain guarded ahead of the vote on Budget 2021 on Thursday that is seen as a referendum on the government’s position.
As such, the key index is likely to stay mostly range-bound and could continue to tether near the 1,600 points level for the time being amid the wait-and-see circumstances.
Still, we see bouts of rotational and selective buying that would be tempered by bouts of quick profit taking activities and selling into strength actions in the interim – keeping the key index in a tight range within the 1,590 and 1,600 points for the time being.
Beyond these levels, the other resistance and support levels are pegged around the 1,605-1,611 and 1,572-1,583 levels respectively. – Nov 24, 2020
