BELOW are excerpts of viewpoints from two selected research houses on what investors can expect in the day ahead:
Inter-Pacific Research
The FBM KLCI edged higher last Thursday on end-of day support on selected banking heavyweights to help it close in the positive territory ahead of voting for the 15th General Election (GE15).
However, conditions in the broader market were insipid as market players await for the outcome of the election that resulted in losers getting the upper hand against gainers for the day.
Traded volumes also stayed mostly muted even as the total trades rose some 14% for the day.
With no clear winner in the recently concluded elections, market conditions are likely to be volatile at the start of the week as the political impasse will leave investor sentiments wary.
The impasse could also see a knee jerk reaction to politically sensitive stocks in the gaming and brewery sectors which could endure a fresh round of selling as market players may opt to retreat to the sidelines until there is clarity in the country’s political environment.
The market uncertainties could also see other heavyweights succumbing to a fresh round of selling that may even prolong until the next government is in place.
Depending on the reaction to the hung parliament, the FBM KLCI may retreat to the 1,440 but if it gives way, the ensuing supports are at 1,430 and 1,420 points respectively.
On the upside, the immediate hurdle is the psychological 1,450 level, followed by the 1,460 level.
Malacca Securities Research
The FBM KLCI eked out marginal gains on Thursday as buying interest emerged in the final hour ahead of the GE15.
As Malaysia faced with a hung Parliament scenario after none of the coalitions won enough seats to form a majority, key focus is now on the outcome of the negotiations among various parties in today’s afternoon.
Market sentiment may remain tepid and trade negatively before the submission of PM candidate name to Istana Negara at 2pm.
Commodities-wise, Brent crude oil price tumbled due to concern about weakened demand in China by trading around US$87/barrel while crude palm oil (CPO) price hovered around RM3,850/metric tonne.
The FBM KLCI snapped a three-day losing streak and inched higher above its daily EMA60 level. Technical indicators, however, were mixed as the MACD Histogram slant towards the zero line while the RSI hovered above 50.
Resistance is pegged along 1,480-1,500 while the support is located at 1,420-1,430. – Nov 21, 2022
