BELOW are excerpts of viewpoints from two selected research houses on what investors can expect in the day ahead:
Inter-Pacific Research
Despite lingering in the negative territory for most of the day, the FBM KLCI managed to recover all its intraday losses at the end of the day to close marginally higher in what was seen as mild window-dressing activities ahead of the end of quarter.
However, the overall trading environment was mixed with the broader market remaining insipid and resulting in losers staying ahead of gaining stocks for day albeit their losses were contained by bouts of support.
We still think that market conditions are likely to remain mostly insipid as there are few noteworthy leads to provide the necessary impetus for sustained upsides although the easing movement restrictions should give some measure of support to the market as the selling pressure has lessened.
Under the prevailing environment, the key index is likely to stay subdued and could also continue with its sideway moves between the 1,520 and 1,550 levels for the time being.
This may allow the key index to build up a base that could also serve as a potential springboard for further gains in the last quarter of the year when a firmer economic rebound gathers pace from the resumption of more business activities.
In the interim, there is support at 1,530 points while the resistance above the 1,550 level is at 1,557 points.
Malacca Securities Research
The FBM KLCI finished in the positive territory on the back of final hour buying despite cautious sentiment after the World Bank revising downwards Malaysia’s 2021 economic growth projection.
Meanwhile, transportation and logistics players were under the limelight amid surging strong result posted by Harbour-Link Group Bhd and the Baltic Exchange Dry Index. Note that the index climbed near 5,000 amid ongoing shipping constraints and rising global demand.
Meanwhile, the energy sector staged a pullback in tandem with declined crude oil price but crude palm oil (CPO) rebounded and may retest the RM4,500 level
The FBM KLCI closed in the green with marginal gains, ending just below the daily EMA20 level. Technical indicators remained negative as the MACD Histogram has extended a red bar, while the RSI continued hovering below the 50 level.
Resistance is envisaged along 1,550-1,560 while the support is set at 1,515. – Sept 30, 2021
