BELOW are excerpts of viewpoints from two selected research houses on what investors can expect in the day ahead:
Inter-Pacific Research
The key index dipped below the 1,520 support as selling picked up pace yesterday with the market staying insipid on fewer available catalysts while market players were still dithering over their investment decisions.
As a result, market breadth was decidedly negative with losing shares more than twice the number of gaining ones.
Meanwhile, increased selling was manifested in a jump in traded volumes that climbed to 3.8 billion shares as broader market shares consolidated further.
With the key index slipping below the 1,520 support, market conditions are becoming more challenging with the buying interest likely to thin further.
Sentiments remain on the tenterhook as market players are opting to stay on the sidelines amid the lack of positive leads to encourage them back into the market.
At the same time, there continues to be wariness over the higher share transaction cost and the potentially slower earnings growth next year.
Therefore, selling pressure is likely to stay ahead of the weekend although we do not rule out some mild buying support after the successive days of selling.
The FBM KLCI’s supports are now pegged at 1,515 and 1,505 points before the psychological 1,500 points comes into play. The near-term hurdles, on the other hand, are at 1,520 and 1,527 points respectively.
Malacca Securities Research
The FBM KLCI continues to trend lower amid the ongoing reporting season without any fresh catalysts to boost the market sentiment; foreign funds remain as net seller.
We believe the softer trading activities might be due to a spike in COVID-19 cases locally and the release of weaker-than-expected results during this reporting season due to the full movement control order (FMCO) situation in 3Q 2021.
Market may consolidate further until end of the month before heading into the window dressing period in the month of December.
As we are still going through the National recovery Plan (NRP), recovery theme counters may be picking up in tandem with the opening of vaccinated travel lanes next week although COVID-19 concerns (daily cases above 6,000) might limit an upside potential.
At the commodity markets, both the crude palm oil (CPO) and Brent crude oil prices were flat.
The FBM KLCI declined further and remained below the immediate 1,520 level. The MACD indicator and RSI indicators are still weak.
Hence, we believe the FBM KLCI may consolidate further in the near term. Support is at 1,500-1,510 while the resistance is located around 1,540-1,550. – Nov 26, 2021
