BELOW are excerpts of viewpoints from two selected research houses on what investors can expect in the day ahead:
Inter-Pacific Research
After an oversold streak, the key index managed to rebound last Friday, hauling off the 1,520-support level as bargain hunting emerged to lift glove maker and banking stocks higher.
The gains also allowed the market to cast aside the worse-than-expected 3Q 2021 gross domestic product (GDP) performance while market breadth turned positive as many of the lower liners and broader market shares also regained ground.
However, traded volumes were still lacklustre as most players were still on the sidelines.
With the key index starting to rebound, the stage is set for further near-term gains as it looks to sustain the recovery with market players also looking ahead to a firmer economic and corporate earnings recovery in the final quarter of the year.
This could allow the key index to regain some strength as it continues to adjust from its bout of the oversold.
However, there could still be some hesitation after last Friday’s gains with quick profit taking slowing its near-term ascend.
On the upside, the FBM KLCI could now target the 1,335 level before moving up to the 1,540 level. The supports, meanwhile, are at 1,520 and 1,516 points respectively.
Malacca Securities Research
The FBM KLCI recovered from the three-day decline on Friday as banking and glove heavyweights led gains, shrugging off concerns over Malaysia’s 3Q 2021 GDP which contracted 4.5% year-on-year due to the lockdown measures.
With foreigners staying positive in their buying mode of our local equities, we expect the broader market sentiment to stay positive with the FBM KLCI extending its rebound formation.
Meanwhile, positive performance on the Wall Street overnight especially on Nasdaq may spill over to technology stocks on our local front.
Commodities-wise, crude palm oil (CPO) price rebounded above RM4,900, crude oil price dropped but gold prices gained, anticipating a stronger breakout.
The FBM KLCI rebounded from the 1,520 support level but hovered below the daily EMA9 level. Technical indicators were mixed as the MACD Histogram extended a negative bar while the RSI hooked higher on Friday after nearing the 30 level.
The next resistance is pegged along 1,540-1,550 while the support is located at 1,500-1,520. – Nov 15, 2021
