BELOW are excerpts of viewpoints from two selected research houses on what investors can expect in the day ahead:
Inter-Pacific Research
Malaysian equities retreated yesterday largely in tandem with the weakness in regional indices that were sent lower by renewed tapering fears.
Profit taking was rampant among stocks that made significant headway recently like plantation and banking stocks.
Most stocks also ended in the red as losers more-than-doubled gaining stocks with many of the lower liners and broader market stocks retreating further on profit taking.
Yesterday’s weakness is keeping the key index further from the psychological 1,600 level which was earlier seen as a critical level to restore market confidence.
With fewer impetuses, coupled with the waning buying interest, the near-term downside risk has also risen that could keep market sentiments in check for longer.
Therefore, the FBM KLCI could end the week on a subdued note as profit taking could still be prevalent, particularly as more market players are resorting to a wait-and-see stance before re-entering the market.
In the interim, the supports are now at 1,570 and 1,565 points respectively. The 1,580 level is the immediate resistance followed by 1,590 points.
Malacca Securities Research
Overall, the FBM KLCI and broader market declined with the returned of selling pressure from foreign funds which turned net sellers with a net outflow of RM6 mil, snapping 12 sessions of net buying streak.
Glove counters extended their retreat amid the on-going vaccination progress. Going forward, we expect recovery theme to stay focus in the anticipation of the re-opening of more economic activities where most stocks might be oversold after being bashed down yesterday.
Commodities-wise, both crude palm oil (CPO) and crude oil prices dipped while aluminium price continued to trend higher.
The FBM KLCI reversed and closed below SMA200 level, losing its grip on the 1,580 support level. Technical indicators remained mixed as the MACD Histogram has extended a red bar, while the RSI has hooked down again.
With the key index crossed below the 1,580 support level, the next support is pegged along 1,560 while the resistance is located at 1,600-1,620. – Sept 10, 2021
