BELOW are excerpts of viewpoints from two selected research houses on what investors can expect in the day ahead:
Inter-Pacific Research
Despite the largely lacklustre market conditions, the key index drew closer to the 1,600 level on an end-of-day buying of selective index heavyweights.
For most of the day, the FBM KLCI was trapped within a tight trading range amid a lack of direction.
However, the lower liners and broader market shares succumbed to a fresh bout of profit taking, resulting in market breadth turning negative with losers overwhelming gainers by nearly two times.
We continue to think that market conditions are still largely unsettled as yet and yesterday’s march towards the 1,600 level could just be the reaction to the Klang Valley moving into Phase 2 of the National Recovery Plan (NRP).
As it is, selective buying may persist as there are still few convincing leads to preserve the near-term upsides.
Consequently, we think market conditions may become choppier as quick profit taking could set in amid the lack of follow-through buying.
This also means a breach of the 1,600 level may take longer and the key index could instead linger within the 1,590 and 1,600 levels over the near term as it continues to build up a base.
The other support and resistance levels are at 1,580 and 1,610 points respectively.
Malacca Securities Research
The FBM KLCI was up firmly in the positive territory following a volatile session as last-minute buying in selected heavyweights led by Press Metal Aluminium Holdings Bhd (+17 sen) and MISC Bhd (+30.0 sen) lifted the key index.
Investors might turn more optimistic going forward as economic recovery seems to be on track with Kuala Lumpur and Putrajaya transitioning to Phase 2 of the NRP from Friday and active cases dropping for the eighth consecutive day;
Nevertheless, investors may be mildly cautious ahead of the overnight policy rate (OPR) decision by Bank Negara Malaysia today whereby the central bank may provide clues to the current economic situation and future recovery outlook for Malaysia.
Commodities-wise, both crude palm oil (CPO) and crude oil prices advanced.
The FBM KLCI climbed above the SMA200 level as the key index finished at its intraday high. Technical indicators remained mixed as the MACD Histogram has extended a red bar, while the RSI is turning higher above 50.
The resistance is envisaged at 1,600-1,620, while the support is pegged along 1,580. – Sept 9, 2021
