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 ended the holiday shortened week on a firmer note by staying above the 1,500 psychological level with light bargain hunting helping to shore up the index heavyweights.
Nevertheless, conditions elsewhere remained morbid with losers overwhelming gainers more than a 2-to-1 ratio.
As it is, many lower liners and broader market shares continue to succumb to heightened selling pressure on concerns over the new COVID-19 variant. Traded volumes, meanwhile, were little changed.
Market conditions remain unsettled and could still endure a volatile streak amid the increasingly risk-off attitude of market players.
Even as the FBM KLCI is already oversold, the insipid market conditions are preventing a meaningful rebound, hence the key index could still drift further.
At the same time, there are still few positives in the market that is likely to prolong the wary conditions in the last month of the year and may also curtail any meaningful window dressing activities.
However, the key index could be attempting to remain above the psychological 1,500 level for now, potentially helped by light bargain hunting to keep it above the level.
The resistances are at 1,510 and 1,515 points respectively while the other support is at 1,491 points.
Malacca Securities Research
The FBM KLCI ended marginally higher prior to the public holiday on Friday with investors bargain hunt on heavyweights.
We believe investors will be focusing on blue chips this month on the back of window dressing activities.
However, the negative sentiment from Wall Street may keep the upside limited given the ongoing worries over the COVID-19 Omicron variant as well as the inflationary pressure where market participants might be anticipating a shift in the US Federal Reserve’s tone towards more hawkish stance in monetary policies going forward.
On the commodity markets, crude palm oil (CPO) price hovered around RM4,650/metric tonne while crude oil price is currently below the SMA200 of US$73/barrel mark.
The FBM KLCI rebounded to close slightly above the critical 1,500 level. Technical indicators remained negative as the MACD Histogram has extended a negative bar while the RSI hovered below the 50 level.
The support level is located at 1,480-1,500, while the next resistance is pegged along 1,520-1,530. – Dec 6, 2021
