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 solid bounce yesterday as bargain hunting activities picked-up pace, particularly from foreign sources.
As it is, market sentiments improved due to the easing contagion fears from Evergrade’s debt issues and the US Federal Reserve’s reiteration of its easy monetary policies.
This also allowed market players to cast aside the lingering concerns over the potential introduction of new taxes. As a result, the gains were broad-based with gainers well ahead of losing stocks for the day.
We see the near-term gains sustaining into the end of the trading week as the market continues to rebound from its bout of oversold.
The economic re-opening theme would also remain in play and this is likely to buoy market sentiments further.
At the same time, the positive undertone in overseas indices could also provide some impetus for the index heavyweights to rebound further.
With the key index closing-in on the 1,540 resistance, we expect it to be breached and potentially head towards the next hurdle at 1,547 points.
Thereafter, the next resistance is at the psychological 1,550 level. Meanwhile, the supports are at 1,530 and 1,520 points respectively.
Malacca Securities Research
We think that there will be more immediate upsides for Malaysian equities towards the end of the week on the back of the extended bargain hunting activities with the key index now finding stability at current levels.
With further clarity on US fiscal policy direction and the calmer Chinese markets, this would help to provide some measure of stability after enduring a volatile spell over the past couple of weeks.
Elsewhere, the broader market will be largely supported by rotational play with traders capitalising on the improvement in trading activities alongside with the positive market undertone.
The FBM KLCI formed a gap up candle to close higher after hovering largely in the positive territory yesterday. Technical indicators have now turned mixed as the MACD Histogram has turned green while the relative strength index (RSI) remained below the 50 level.
Resistance is located at 1,550-1,560 while the support is pegged at 1,515. – Sept 24, 2021
