BELOW are excerpts of viewpoints from two selected research houses on what investors can expect in the day ahead:
Inter-Pacific Research
Although benign, the FBM KLCI continues to lose ground yesterday in relatively lacklustre trading as the Malaysian equity market remained directionless despite the mostly higher regional and global indices.
Profit taking remained prevalent and energy stocks were the main losers for the day. In the broader market, conditions were also insipid with many stocks pulling back as well.
Consequently, market breadth stayed negative but traded volumes spiked up to 3.7 billion shares.
With market conditions remaining relatively indifference, the key index could still end the week on a whimper due to the lack of buying interest.
As it is, the key index is unable to make further headway after finding the recent high of 1,465 points a formidable level to clear.
Nevertheless, at the current levels, the key index remains close to its highest level since February this year and could still make further headway in the final month of the year if window dressing activities emerge.
For now, however, there are no signs of a quick rebound as yet even though it cannot be ruled out that the key index could continue to drift amid the lack of leads with the psychological 1,450 support coming into play.
Below that, the other support is at 1,445 points while the immediate resistance is at the 1,455 level, followed by the 1,460 level.
Malacca Securities Research
The FBM KLCI headed lower for the session, bucking the overall positive momentum shown on the global stock markets.
Meanwhile, the US stock markets were closed for Thanksgiving holiday.
Although we may anticipate trading activities to be slower throughout the Asian trading hours, upside could emerge with the expectation that Beijing would boost policy support to allow banks to offer unsecured short-term loans to qualified developers for the first time.
This may spur the upside move on local equities with traders focusing on the on-going reporting season.
On the commodity markets, Brent crude prices declined near the US$81/barrel as concerns over demand persisted amid rising US inventories with the next OPEC+ meeting scheduled on Nov 30.
The FBM KLCI ended lower and is currently retesting the EMA20 level. The technical readings on the key index are mixed with the MACD Histogram extending a negative bar while the RSI has maintained above 50.
The resistance is pegged around 1,470-1,480 while the support is at 1,440-1,455. – Nov 24, 2023
