BELOW are excerpts of viewpoints from two selected research houses on what investors can expect in the day ahead:
The FBM KLCI managed to end the day with minute gains following an end-of-day buying on selective index heavyweights that shored up the key index in an otherwise listless day.
The unveiling of the 12th Malaysia Plan (12MP) failed to excite market players and left sentiments little changed.
Losers again topped gaining stocks for the day and trading was mixed in the broader market due to the lack of leads with technology-related stocks retreating on profit taking after last week’s big moves.
We see little change to the immediate market outlook and the broadly directionless trend is likely to continue.
Most market players are still looking for more definitive leads, particularly on corporate earnings growth outlook before deciding on the next course of action.
However, while fresh buying is still absent, so is the selling pressure as the market’s undertone is noticeably improved amid further easing of the pandemic conditions that has also lessened the need for movement restrictions.
For now, we see the FBM KLCI remaining range-bound, hovering within 1,520 and 1,540 levels with the interim support and resistance at 1,530 and 1,537 points respectively.
Malacca Securities Research
The FBM KLCI rebounded from the earlier session and edged higher as investors picked up shares in midday after digesting the 12MP that highlighted economy may improve to around 4.5-5.5% amid a development expenditure allocation of around RM400 bil for 2021-2025.
Several highlights under the 12MP include nationwide 5G roll-out, infrastructure project resumptions and a greater focus on renewable energy.
On a side note, crude oil price advanced to close above the US$79/barrel level.
The FBM KLCI continued to trade sideways; the key index rebounded to post marginal gains albeit still hovering below the daily EMA9 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 located at 1,550-1,560 while the support is pegged along 1,515. – Sept 28, 2021