BELOW are excerpts of viewpoints from Malacca Securities Research on what investors can expect in the day ahead:
“Wall Street’s sentiment has turned positive last week despite the spike in COVID-19 cases following the emergence of Omicron variant.
Meanwhile, the broader stock market on the local front was fairly positive led by energy sector but FBM KLCI was flat on Friday.
We expect buying interest to continue at least for the week given the Omicron fear has faded.
We think traders should focus on recovery theme stocks as well as companies with solid earning visibility such as the technology sector.
Also, thematic theme may surround the furniture and timber-related stocks on the back of recent flood situations.
On the commodity markets, Brent crude is hovering above US$75/barrel while crude palm oil (CPO) price has surged above RM4,600/metric tonne.
The FBM KLCI ended flat on Friday amid lacklustre trading activities prior to the Christmas weekend. Technical indicators are positive as the MACD Histogram has extended a positive bar, while the RSI is hovering above the 50 level.
The support level is at 1,500 while the resistance is pegged along 1,530-1,540.” – Dec 27, 2021
