BELOW are excerpts of viewpoints from two selected research houses on what investors can expect in the day ahead:
Malacca Securities Research
The positive progress of Budget 2021 has instilled further confidence into the Malaysian market as the FBM KLCI soared beyond the 1,600 psychological level yesterday.
With the uncertainty from the afore-mentioned event being eliminated, the focus has now reverted back to the economic recovery progress.
Hence, we reckon that the positive momentum may resume over the near term. The lower liners are also on a positive note with investors nibbling on beaten down stocks, capitalising on the positive market sentiment.
We continue to favour the construction sector as a proxy to the Budget 2021 amid the higher development expenditure. The healthcare sector will continue to fare better, while the technology sector is expected to remain upbeat as the recent batch of corporate earnings remained solid.
The FBM KLCI has extended its gains, forming another bullish candle as the key index remains supported above the daily EMA9 level.
Under the prevailing positive momentum, further upsides are likely to come by toward the immediate resistance at 1,640 followed by 1,670. Meanwhile, the supports are at 1,600 followed by 1,570.
Inter-Pacific Research
The FBM KLCI closed at a new high for the after Budget 2021 was passed in Parliament yesterday, temporarily allaying fears to the contrary.
While there is some inkling of positivity over Budget 2021, it remains to be seen if it could ultimately receive final approved by the middle of next month.
In the interim, market conditions are still looking toppish after the month-long run-up amid progress in the COVID-19 vaccine development that has stretched valuations and to also reflect 2021’s corporate earnings recovery.
We continue to think that the market is due for a meaningful consolidation for the gains to be digested. A pull-back could lead the key index back to the 1,600 support, which is followed by the 1,590 level.
The resistances, meanwhile, are at 1,620 and 1,626 points respectively. – Nov 27, 2020
