BELOW are excerpts of viewpoints from two selected research houses on what investors can expect in the day ahead:
Inter-Pacific Research
Malaysian stocks made a strong up-move on Friday, buoyed by the combination of easing US inflation, stronger-than-expected Malaysian GDP in 3Q 2022 and China’s move to loosen its pandemic restrictions.
This helped to push the FBM KLCI to its highest level in two months as market sentiments became more positive.
As a result, gainers were ahead of losers by more than a 2-to-1 ratio with lower liners and broader market shares also making significant headway.
The near-term outlook remains buoyant as market sentiments have improved with the odds of further steep interest rate hikes diminishing following the easing inflation pressure.
As a result, there could be renewed buying on Malaysian equities as market players re-position their portfolios due to the lower inflationary and interest rate hike threats.
Bargain hunting could also emerge on some of the beaten down sector leaders as overall market valuations remain attractive and will be supportive of further upsides, albeit we do not rule out some hesitation on quick profit taking actions at the start of the week.
Nevertheless, the upside bias should still prevail for the most part and the key index could target the 1,473 and 1,480 levels ahead. On the downside, the supports are at 1,460 points and the psychological 1,450 level.
Malacca Securities Research
The FBM KLCI notched higher on Friday, fuelled by optimism over Malaysia’s 3Q 2022 economy growth as well as the significant global markets recovery move.
We reckon that the local bourse should remain resilient, taking cue from the buoyant Wall Street over the weekend.
Still, investors may pay attention to the US economic data such as the US retail sales as well as jobs data as that may provide more insights into the aggressiveness of upcoming rate hikes.
Commodities-wise, Brent crude price jumped above US$95/barrel as the market cheered the easing of COVID-19 restrictions in China while crude palm oil (CPO) price climbed above RM4,250/metric tonne.
The FBM KLCI jumped, breaching above its immediate resistance at 1,465 as well as its daily EMA120 level. Technical indicators were positive as the MACD Histogram turned positive while the RSI hovered above 50.
The next resistance is pegged along 1,480-1,500 while support is set at 1,420-1,430. – Nov 14, 2022
