BELOW are excerpts of viewpoints from two selected research houses on what investors can expect in the day ahead:
Malaysian equities succumbed to further selling that was pronounced in the afternoon session on reports that government may compel banking institutions to exempt interest on loan moratoriums, coupled with the possibly of the introduction of a windfall tax.
Consequently, banking stocks emerged as the day’s biggest loser and except for technology stocks, the selling was also widespread on most lower liners and broader market shares, resulting in losers exceeding gainers by more than two-fold.
The near-term outlook continues to look unsettled as the latest government moves are likely to keep market sentiments in check.
The purported introduction of the windfall tax and interest exemption could affect future corporate earnings performance, and this is likely to send more market players to the sidelines for now as they seek more clarity on the new proposals.
In the interim, the downside bias will remain over the near term and the key index may see further profit taking ahead of the public holiday tomorrow.
Following the incessant falls of late, the supports have also been set lower with the 1,550 level being the immediate support, followed by the 1,542 level. On the other hand, the resistances are at 1,565 and 1,570 points respectively.
Malacca Securities Research
The FBM KLCI sank for a fourth consecutive session as the key index accelerated to the downside throughout the session, mainly dragged down by Press Metal Aluminium Holdings Bhd and most banking heavyweights.
Concerns over the possible interest rate exemption for loan moratorium repayments, coupled with the possibility of imposing windfall tax spooked the market.
However, we believe market may be turning oversold soon and likely to expect bargain hunting activities to emerge.
Meanwhile, both the crude palm oil (CPO) and crude oil prices extended gains while the Baltic Dry Index (BDI) continued its uptrend movement.
The FBM KLCI fell below the 1,560 immediate support level and the daily EMA120 level. Technical indicators turned negative as the MACD Histogram has extended a red bar, while the RSI hovered below the 50 level.
Should the key index continue hovering below the 1,560 level, the next support is located around 1,535 while the resistance is pegged along 1,580-1,600. – Sept 15, 2021