BELOW are excerpts of viewpoints from two selected research houses on what investors can expect in the day ahead:
Malacca Securities Research
Lifted mainly by the banking heavyweights, the FBM KLCI edged marginally higher in tandem with the positive regional markets as well as the positive performance on Wall Street.
However, as market participants reacted to the Bank of England (BOE) rate hike decision, the US stock markets fell significantly as investors turned cautious and continue to digest the faster tapering of bond buying by the US Federal Reserve which has turned more hawkish in the recent Federal Open Market Committee (FOMC) meeting.
With that, we opined that market volatility remained in place on the local bourse with a downward bias tone.
Meanwhile, both the crude palm oil (CPO) and crude oil prices advanced.
The FBM KLCI swung higher but failed to close above the daily EMA9 level. Technical indicators remained mixed as the MACD Histogram has extended a positive bar while the RSI hovered below the 50 level.
The support level is located at 1,450 while the resistance is pegged along 1,485-1,500.
Hong Leong Investment Bank Research
Volatility will prevail throughout this week as investors assess the Fed’s hawkish tilt policy, Omicron variant uncertainty, persistent foreigners’ liquidations (-RM1.1 bil in December after net inflows of RM3.6 bil from August-November) as well as the “market unfriendly” taxes in Budget 2022.
Nevertheless, the benchmark FBM KLCI may probably regain its footing in the coming days (support: 1,430-1,452; resistance: 1,490-1,500-1,515) in anticipation of a steeply oversold relief rally ahead of potential year-end window-dressing activities. – Dec 17, 2021
