BELOW are excerpts of viewpoints from two selected research houses on what investors can expect in the day ahead:
Inter-Pacific Research
Friday’s early morning bounce came to naught as glove maker stocks took a dive in the afternoon session following Top Glove Corp Bhd’s less-than-stellar results which sent the key index back below the 1,500 level.
Sentiments also turned weaker in tandem with the insipid performance of key global stock indices.
As a result, traded volumes remained below the 3.0 billion level with the lack of following also sending most of the broader market shares lower and losers continuing to dominate gainers by a wide margin.
The near-term outlook is likely to stay on a low gear with the Omicron concerns and lack of impetus to keep the Malaysian equity market subdued.
These concerns could also weigh on market sentiments and may leave the FBM KLCI on a drifting mode for longer.
While window dressing activities are still in the offing, it could be watered down as gains may be met by increased selling actions and the lack of buying support as the market undertone is still largely cautious.
Under the prevailing environment, the key index could still be attempting to stay above the 1,480 support but choppiness will remain a feature that could dampen the market’s performance.
Before that, there is a minor support at 1,484 points. The hurdles, meanwhile, are at 1,490 points and the psychological 1,500 level respectively.
Malacca Securities Research
In line with regional weaknesses, the FBM KLCI ended the week lower due to heavy sell-down in glove heavyweights.
Meanwhile, foreign investors have sold local equities for the past eight trading days, valued at RM981 mil.
On the global front, concerns over the COVID-19 Omicron variant dampening the economic recovery has subsided which lend a support to both the stocks and the commodity markets.
This week, investors will be waiting for the conclusion of the FOMC (Federal Open Market Committee) meeting to look out for clues on the monetary policies going forward.
On the commodity front, crude palm oil (CPO) price stood above RM4,800 while that of crude oil price hovered above the US$75/barrel mark.
The FBM KLCI retreated to close below the key 1,500 support level. Technical indicators remained mixed as the MACD Histogram has extended turned positive while the RSI is hovering below the 50 level.
The key index may find its next support level at 1,485 while resistance is pegged along 1,520-1,535. – Dec 13, 2021
