BELOW are excerpts of viewpoints from two selected research houses on what investors can expect in the day ahead:
Inter-Pacific Research
The key index continues to lose ground to end the week on a dour note by remaining below the 1,580 level.
As it is, index-linked stocks continue to see profit taking following their recent gains, but the lower liners and broader market shares rebounded on mild bargain hunting actions as many of them ended the week on a firmer note.
This also helped market breadth to turn positive, albeit gainers were just slightly ahead of losers for the day.
Market conditions are likely to stay morbid for the time being amid the lack of new impetuses to promote further fresh buying. At the same time, we also see bouts of profit taking on some of the stocks that have made significant headway over the past month.
Although the country’s economic outlook has improved somewhat with the resumption of many economic activities, the unabated COVID-19 infection rate is still leaving market conditions guarded.
Furthermore, there are also few leads from overseas markets to help shore up the local market. Under the prevailing environment, the downside bias is likely to sustain and keep market conditions subdued for longer.
This could also mean that the 1,570 support is in play and if it gives way, the next support is at 1,560. The hurdles, on the other hand, are at 1,580 and 1,590 points respectively.
Malacca Securities Research
The FBM KLCI extended its decline with marginal losses on Friday after erasing most of the earlier gains and the sentiment remained mixed.
Nevertheless, the local bourse continued to see buying support from foreign and retail investors on the back of brighter economic recovery prospects driven by positive developments in the National Recovery Plan (NRP) and vaccination rate.
Meanwhile, aluminium price remained elevated, surging above US$2,900 level as market digested the predictions from the Harbor Aluminum Summit attendees that supply shortage is unlikely to be alleviated in the short term.
Crude oil price reversed and closed above US$72 per barrel level, while crude palm oil (CPO) dropped below RM4,300/metric tonne.
The FBM KLCI continued to hover below the daily EMA9 level after losing its grips on the 1,580 level. Technical indicators remained mildly negative as the MACD Histogram has extended a red bar while the RSI continued to drift lower below 70.
The key index may find its support around 1,560, while the resistance is at 1,600. – Sept 13, 2021
