BELOW are excerpts of viewpoints from two selected research houses on what investors can expect in the day ahead:
Inter-Pacific Research
The FBM KLCI staged a firm uptrend yesterday, buoyed by rotational interest among index linked constituents, particularly the beaten-down glove makers and oil & gas (O&G) play that regained ground with the help of increased foreign interest.
Notwithstanding the FBM KLCI’s gains, the broader market was mostly unexciting with losers still ahead of gainers for the day.
Technology-related companies were the big losers as more profit taking emerged following their recent gains.
Although yesterday’s gains were welcome to allow the FBM KLCI to break out of its range-bound trend, it remains to be seen if the upside can be sustained.
We see market conditions as still mostly indifferent amid the lack of fresh catalysts although rekindled interest in O&G stocks and other laggards may help to preserve much of the gains.
In the interim, quick profit taking could emerge on some of the recent gainers following the weakness sparked by fresh inflationary concerns in global equities overnight.
Hence, we think the cautious trend may re-emerge and stock prices could be pressured again even as we still see pockets of supports that may allow the key index to stay above the 1,540 support for now.
Below that, the other support is at 1,533 points while the psychological 1,550 level is the immediate hurdle followed by 1,557 points.
Malacca Securities Research
The FBM KLCI finished higher on the back of positive sentiment as investors digested the positive economic outlook in the 12th Malaysia Plan (12MP) as well as powered by a rally in the energy sector after crude oil price climbed above the US$80/barrel mark due to improved demand amid re-opening of economic activities.
However, investors may remain cautious while waiting for economic activities to return to normalcy considering the significant pullback on Wall Street overnight.
Meanwhile, crude palm oil (CPO) price advanced near the RM4,450 level.
The FBM KLCI extended its gains as the key index advanced, closing above the daily EMA9 level. Technical indicators, however, remained negative as the MACD Histogram has extended a red bar while the RSI continued to hover below the 50 level.
Resistance is pegged at 1,550-1,560 while the support is set along 1,515. – Sept 29, 2021
