BELOW are excerpts of viewpoints from two selected research houses on what investors can expect in the day ahead:
Inter-Pacific Research
Malaysian equities mounted a strong rebound yesterday to regain its losses a day earlier, helped by renewed buying on banking and oil and gas stocks – the latter buoyed by rising crude oil prices.
Sentiments were also buoyed by the Dow’s new record high closing that extended to the Asian region. Even as most equities regained ground, however, conditions were relatively mixed with a large proportion of losing stocks while overall volumes stayed moderate.
Despite yesterday’s rebound, which was stronger-than-anticipated, we think the cautiousness could remain ahead of the Budget 2021 voting in Parliament today. Depending on the outcome of the voting which is also seen as a referendum on the government, Malaysian equities could react accordingly and as it stands, there appears to be hurdles with talks suggesting that the voting may even be postponed by a week.
Therefore, the lingering cautiousness could see the key index surrendering some of the upsides from yesterday’s rebound on quick profit taking activities, but most part the market could stay range-bound until the vote is taken.
We expect the key index to linger within the 1,590 and 1,600 points over the near term with the other support and resistance levels at 1,585 and 1,611 respectively.
Malacca Securities Research
It was a firm performance on the FBM KLCI, mirroring the gains on Wall Street overnight as US President-elect Joe Biden is stepping up to improve global trade relations. Back home, investors will be keeping an eye on the Budget 2021 vote to provide further clarity on the political landscape in Malaysia.
The lower liners are attempting for a recovery, but gains will be choppy as quick profit taking remains on the table with investors opting to keep their trades short due to the recent volatility.
The FBM KLCI gapped up to recover all its previous session losses as the key index rebounded off the daily EMA9 level. With the downward pressure appears to have abated, the consolidation on the local bourse may continue with the immediate resistance set at 1,610, followed by 1,640. Meanwhile, the supports are at 1,570, followed by 1,540. – Nov 26, 2020
