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 lost further ground yesterday as it dipped below the 1,520 level with market players continuing to take a defensive stance to leave the market in a drifting mode.
However, mild support, mainly from foreign sources, helped to keep the key index trending within a tight range.
Conditions elsewhere were also largely directionless with selling pressure sustaining to keep market breadth in the negative territory as well as market participation on the low side.
The lack of leads, coupled with the still guarded market conditions, is likely to keep sentiments wary for longer.
The country’s 3Q 2021 gross domestic product (GDP) performance which will be unveiled today is unlikely to provide much impetus as it was affected by lockdowns.
At the same time, an improved performance from 4Q 2021 onwards has also been anticipated and will leave few surprises.
As a result, we think the key index will continue to drift amid the weak market albeit some support may keep the key index close to the 1,520 level after its extended consolidation that has left it oversold.
Below that, the supports are at 1,515 points and the psychological 1,500 level. The resistances, meanwhile, are at 1,525 and 1,530 points respectively.
Malacca Securities Research
The FBM KLCI inched lower in a volatile trading session, marking its third straight losing streak as investors eye Malaysia’s 3Q21 GDP data which will be released today to gauge the country’s economic condition.
While market sentiment may remain cautious without a fresh lead, we believe economic recovery is still on track as Malaysia will reopen its borders to international visitors by Jan 1 at the latest.
Investors may position themselves on fundamentally solid companies amid the on-going earning season.
Meanwhile, crude palm oil (CPO) price dropped but crude oil price rose to stay below the crucial US$85/barrel level.
The FBM KLCI broke below the 1,520 support level as the key index skidded after dipping in and out of the positive and negative territories.
Technical indicators remained negative as the MACD Histogram has extended a negative bar, while the RSI hovered below the 50 level.
The key index may retest the next support level at 1,500 while the resistance is pegged at 1,540-1,550. – Nov 12, 2021
