BELOW are excerpts of viewpoints from two selected research houses on what investors can expect in the day ahead:
Inter-Pacific Research
Rotational plays came to the fore and allowed Malaysian equities to end the week on a positive note.
However, the key index was relatively subdued for most of the day, hovering within a tight range but ending the day with minute gains on mild end-of-day bargain hunting.
Many lower liners and broader market shares were also higher amid the calmer market condition that also saw increased participation, hence allowing for market breadth to stay positive.
Market sentiments are continuing to build-up with the abating pandemic conditions that is permitting the re-opening of more business segments and lifting the country’s economic prospects going into the final quarter of the year.
At the same time, the firmer crude oil and palm prices would provide further impetus for stocks in these sectors.
Nevertheless, we think the way up could remain choppy as bouts of quick profit taking from last week’s gains may slow the key index’s near-term ascend.
As such, the 1,570 level looks to be the near-term hurdle but if it is cleared, the ensuing resistance is at the 1,580 level. Meanwhile, the immediate support is at the 1,560 level, followed by the psychological 1,550 level.
Malacca Securities Research
The FBM KLCI continued to build on positive sentiment and elevated commodities prices on Friday, taking cue from buoyant regional markets.
We expect the buying momentum on the local bourse to continue, backed by brighter economic prospects as the country will resume the interstate and overseas travel from today onwards after adults’ vaccination hitting 90%.
Also, the interstate travel may reboot the tourism and transportation companies specifically for the tourism segment.
Meanwhile, the CPO price rallied, trading above RM4,950 level while the crude oil price stood above US$82 per barrel mark.
The FBM KLCI extended its winning streak for the fourth straight session as the key index continued hovering above the 1,560 level. Technical indicators remained positive as the MACD Histogram has extended a green bar, while the RSI hovered above the 50 level.
The resistance is located around 1,580-1,600 while the support is located at 1,520. – Oct 11, 2021
