BELOW are excerpts of viewpoints from two selected research houses on what investors can expect in the day ahead:
Inter-Pacific Research
With no follow through buying on Friday, quick profit taking actions permeated instead to leave the key index below the 1,550 level.
Market conditions were left wanting due to the weakness in regional markets after Evergrande missed repayment of its U dollar-denominated borrowings.
However, the lower liners and broader market shares were mixed-to-lower ahead of the weekend as profit taking also emerged on some of last week’s big movers.
The FBM KLCI’s inability to make a pass at the psychological 1,550 level is leaving it in a state of flux again after it barely recovered from its recent consolidation.
This could leave the market directionless as well as result in the market drifting for longer.
As it is, positive leads are still few and far between which is likely to prolong the insipid market environment.
Moreover, market players are still waiting for further clarity on the potential introduction of new taxes which could leave them cautious for now.
With the insipid trend to continue, the FBM KLCI may extend its consolidation with the supports pegged at the 1,530 and 1,525 levels, while the resistances are at the 1,540 and 1,550 levels respectively.
Malacca Securities Research
The FBM KLCI finished a volatile week in the negative territory, mirroring the weakness across China and Hong Kong stock markets amid investors fretting over Evergrande’s debt concerns.
Moreover, the key index was further dragged down by Tenaga Nasional Bhd and selected banking heavyweights.
The local bourse may remain sideways with investors eyeing on the 12th Malaysia Plan (12MP) which will be tabled today; we noticed construction and property sectors have some trading activities prior to this event.
Commodities-wise, crude oil price rose above the US$78 level while crude palm oil (CPO) price declined. Meanwhile, the Baltic Exchange Dry Index still hovered at its 12-year high despite a retreat on Friday.
The FBM KLCI retreated as the key index still closed below the daily EMA9 level. Technical indicators were negative as the MACD Histogram has extended a red bar and the RSI hovered below the 50 level.
Resistance is located at 1,550-1,560 while support is pegged along 1,515. – Sept 27, 2021
