BELOW are excerpts of viewpoints from two selected research houses on what investors can expect in the day ahead:
Inter-Pacific Research
Malaysian equities continue to inch higher and ended the day just a shade below the psychological 1,450 level on continuing nibbling by foreign institutional buyers.
Glove makers provided the support to the key index as they continue to attract bargain hunting but the broader market and lower liners were mixed with market breadth turning negative.
However, traded volumes continue to pick up pace and stayed comfortably above the 3.0 billion shares mark.
There should be more near-term upsides as the tamer-than-expected US inflation strongly buoyed US markets overnight that should also permeate to Malaysian equities and allow the FBM KLCI to end the week on a firmer note.
The more subdued inflation reading could also prompt the US Federal Reserve to slow down the pace of its tapering which is seen as a strong market catalyst.
At the same time, market players are expecting the Malaysian economy to post a strong 3Q 2020 gross domestic product (GDP) performance that could also provide further near-term buying impetus.
Therefore, the key index should clear the psychological 1,450 level and could even take out the ensuing hurdles at 1,457-1,460 points. Thereafter, the next resistance is at 1,468 points while the supports are at 1,440 points and at 1,435 points respectively.
Malacca Securities Research
The FBM KLCI reversed its earlier losses and closed in the positive territory, outperforming the negative regional markets.
Given the big rally on Wall Street after the release of the inflation data in the US, investors have started to believe that the inflation numbers could have peaked and hopeful for a less-aggressive interest rate hikes by the US Fed.
Hence, we believe the positive momentum may spill over to the regional markets as well as the local bourse.
Commodities-wise, Brent crude price hovered above US$93/barrel while crude palm oil (CPO) price fell towards RM4,230/metric tonne amid worries over rising production.
The FBM KLCI erased earlier losses and climbed above its daily EMA60 level. Technical indicators, however, remained mixed as the MACD Histogram extended a negative bar while the RSI hovered above 50.
The resistance is envisaged along 1,465-1,480 while support is located at 1,410-1,420. – Nov 11, 2022
