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 managed to close with minute gains overnight with an end-of-day haul on selected index heavyweights in an otherwise mixed trading session.
Profit taking was prevalent following the hefty gains a day earlier as oil & gas (O&G) stocks retreated but the rally of plantation stocks continued.
Many lower liners and broader market shares were also higher as fresh buying interest returned, thus helping some laggards to make headway.
Despite yesterday’s hesitation, sentiments have improved of late amid firmer commodity prices that headed the Malaysian equity market’s revival.
With conditions still looking sanguine, further near-term gains are in the offing with commodities play to still provide the impetus and rotational interest to also pick up.
While profit-taking could still temper some of the gains, the upside bias should prevail as there appears to be sustained following from foreign institutions that would also provide the much needed market support.
Furthermore, the calmer overseas market sentiments will also provide the necessary boost to the local market environment.
On the upside, the FBM KLCI may target the 1,570 level, followed by 1,576 points while the 1,560 level is the immediate support. Thereafter, the support is at the 1,550 level.
Malacca Securities Research
The FBM KLCI rose for the third consecutive session as the key index raced higher into the closing bell in tandem with regional peers that tracked the overnight Wall Street rally.
The key index may continue to track the positive sentiment in Wall Street given the fading US debt ceiling worries, coupled with the interstate border re-opening talks as well as the firmer crude oil price which has rebounded and is trading above the US$81/barrel level.
Meanwhile, crude palm oil (CPO) price saw a mild pullback. Besides, we believe traders will be on the lookout for sector that may benefit under the Budget 2022 which will be tabled on Oct 29.
The FBM KLCI extended its rally for a third session, crossing above the resistance level at 1,560. Technical indicators turned positive as the MACD Histogram has extended a green bar, while the RSI continued hovered above the 50 level.
Should the key index hold above 1,560, the next resistance is pegged along 1,580-1,600. Support is located at 1,520. Oct 8, 2021
