BELOW are excerpts of viewpoints from two selected research houses on what investors can expect in the day ahead:
Malaysian equities retreated overnight as fresh buying interest evaporated to send the key index to its lowest level in three weeks with lack of new leads prompted further profit taking.
Glove maker stocks succumb to heavy selling again to lead the losers, while the broader market and most lower liners also pulled-back after last Friday’s gains.
As a result, market breadth turned negative with losers overwhelming gainers by a wide margin while total market volume also tapered.
The continuing lack of noteworthy leads, coupled with the still slow improvements in the country’s pandemic conditions is likely to leave the overall market conditions guarded for longer.
Consequently, fresh buying interest has become much thinner, thus leaving the key index to drift despite more economic sector re-openings.
Looking ahead, the FBM KLCI is likely to stay indifferent and this could also prolong its drifting mode due the lack of fresh impetuses to encourage the return of market players.
There could still be bouts of profit taking but with the selling pressure easing, the downsides may be limited.
As such, the 1,560 support should hold for now with the next support located at the 1,550 level. The resistances, meanwhile, are at 1,580 and 1,590 points respectively.
Malacca Securities Research
Tracking the overall negative regional performances, the FBM KLCI dipped for a third straight session amid sour market sentiment on heavy selling in selected heavyweights led by Top Glove Corp Bhd.
However, tracking the positive rebound on Wall Street coupled with stability in the political landscape following the memorandum of understanding (MOU) inked between the federal coalition and Pakatan Harapan yesterday, we believe the recent bashed down in broader market may to be cushioned out by potential bargain hunting activities at least for this week.
Commodities-wise, both the crude palm oil (CPO) and crude oil prices advanced while aluminium prices continue to charge higher.
The FBM KLCI marked third session decline but managed to close above the daily EMA20 level after dipping below it throughout the session. Technical indicators remained mixed as the MACD Histogram has extended a red bar, while the RSI hovered above the 50 level.
Support is pegged around 1,560 while the resistance is located at 1,600. – Sept 14, 2021