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 managed to post a rebound yesterday to resume its window dressing activities as well as regaining its 1,500 psychological level.
Much of the recovery came towards the end of the day on selected buying of heavyweights with the gains generated from thin volumes that slipped to just 2.7 billion shares for the day.
In the broader market, however, conditions were mixed with gainers just being ahead of losers amid continued profit taking and lower market participation.
The market’s near-term environment is likely to stay mixed as there are still few noteworthy leads for market participants to follow with also fewer corporate developments ahead of the year-end.
Nevertheless, the window dressing activities could still dominate trades and allow the FBM KLCI to fortify its position above the psychological 1,500 level.
Still, we see buying interest remaining thin due to the prevailing market cautiousness ahead of next year’s lifting of equity transaction cost as well as the lack of leads.
With the 1,500 level likely to hold, window dressing activities may lift the FBM KLCI to the 1,510 level before making a pass at the 1,520 level. The 1,500 level is the immediate support followed by the 1,490 level.
Malacca Securities Research
The FBM KLCI posted marginal gains on the back of softer trading activities; the daily trading value stood at RM1.59 bil.
Although performance of the local bourse was in line with other regional stock markets yesterday, we believe selling pressure could emerge tracking the negative sentiment from the Wall Street.
Fresh concerns over the Omicron variant still persist as the UK has implemented new COVID-19 restrictions to prevent a spike in COVID-19 cases.
Nevertheless, we believe window dressing activities may also emerge in the near future on heavyweights.
On the commodity markets, crude oil price fell 1.85% by hovering above US$74/barrel while the crude palm oil (CPO) price extended losses.
The FBM KLCI rebounded to close above the key 1,500 level, flirting around the daily EMA9 level.
Technical indicators have turned slightly positive as the MACD Histogram has turned higher while the RSI is climbing upwards from the oversold region towards 50.
The support level is located at 1,485 while the next resistance is pegged along 1,520-1,535. – Dec 10, 2021
