BELOW are excerpts of viewpoints from two selected research houses on what investors can expect in the day ahead:
Inter-Pacific Research
Although the key index continues to fall yesterday, this was more modest as it was attempting to find some support after the recent steep falls that also saw it briefly in positive territory during the day.
As it is, gainers outpaced gainers for the first time in four sessions as many of the lower liners and broader market shares rebounded on the back of light bargain hunting activities.
However, the overall market participation was relatively unchanged.
While there were attempts to find some near-term stability yesterday, the efforts could prove to be futile as the continuing weakness on key global indices could still leave market conditions unsettled with a downside bias likely to remain for the time being.
As it is, sentiments are still frayed with few positive catalysts to entice fresh buying. This would see the ongoing insipid market trend continuing with the key index set to end the week on a sombre note.
With the FBM KLCI failing to sustain above the 1,530 level, the support is now pegged at the 1,520 level.
Further below, the 1,500 level will be the next main support. Meanwhile, the resistances are at 1,535 and 1,540 points respectively.
Malacca Securities Research
The FBM KLCI declined for another session amid mixed regional markets as banking heavyweights fell after Bank Negara Malaysia (BNM) kept its overnight policy rate (OPR) unchanged.
Tracking the weakness from Wall Street overnight, we believe investors may still be jittery in anticipation of an interest rate hike environment as well as the still-spiking COVID-19 cases.
Hence, the negative sentiment may spill over to stocks on the local front with profit taking activities emerging on technology counters.
On the commodity markets, crude palm oil (CPO) price continued to trend above its all-time-high while crude oil price hovered above the US$88/barrel mark.
The FBM KLCI ended lower for the fourth consecutive session as the key index crossed below the immediate support at 1,530. Technical indicators remained negative as the MACD Histogram has shown a negative bar while the RSI remained below the 50 level.
The next support is set at 1,505 while resistance is located at 1,570. – Jan 21, 2022
