BELOW are excerpts of viewpoints from two selected research houses on what investors can expect in the day ahead:
Inter-Pacific Research
Window dressing activities continue to dominate trade, particularly in the last minutes of trading last Friday to help push the key index back above the 1,550 level.
For most part of the day, however, market conditions were lacklustre due to the relatively benign market following as retail and foreign funds offloaded their shares with local funds the sole net buyer.
Nevertheless, market breadth remained positive on mild bouts of bargain hunting.
After a decent run-up in the past month, market conditions have become toppish, particularly after last Friday’s last-minute push that allowed the key index to pass the 1,550 level.
As a result, consolidation is already due despite the market’s calmer condition after the Government re-instated a cap on stock transactions albeit it is higher than the previous cap.
At the same time, much of the recent gains were on low volumes and the end of the window dressing activities may see profit taking activities emerging.
This could see the key index retreating to the 1,560 support and if it gives way, the next support is pegged at the 1,550 level. On the upside, the hurdles are at 1,570 and 1,575 points respectively.
Malacca Securities Research
The FBM KLCI ticked higher on the last trading day of 2021 as bargain hunting activities mainly in banking and telecommunication heavyweights picked up in the final trading hour.
Following a volatile year of trading, the local bourse may stage a recovery moving forward with recovery-themed sectors being the main focus.
However, sentiment may still be dampened by the surging Omicron variant cases around the world. Nevertheless, the market players might cheer on the return of the share trading stamp duty capped at RM1,000 starting today.
On the commodities market, crude pam oil (CPO) price is hovering near the RM4,700/metric tonne level while crude oil price declined but remained firm above the US$77/barrel mark.
The FBM KLCI (+1.2%) notched higher on the final trading day breaking above the previous resistance level at 1,560. Technical indicators remained positive as the MACD Histogram has extended a positive bar while the RSI is hovering above the oversold 70 level.
The next resistance is located at 1,585-1,600 while the support is envisaged along 1,560 followed by 1,530. – Jan 3, 2022
