BELOW are excerpts of viewpoints from two selected research houses on what investors can expect in the day ahead:
Inter-Pacific Research
Malaysian equities ended the week on a firmer footing as the key index posted minor gains on Friday to end near the day’s high.
Rotational buying on telco and banking stocks aided the FBM KLCI’s ascend whereas the broader market and lower liners performances were mixed.
Nevertheless, market breadth tilted to the positive side even as traded volumes continues to stay anaemic, lingering below the 3.0 billion mark due to the lack of buying interest.
There could still be some mild upsides at the start of the week following Barisan Nasional’s resounding election win in Melaka that has increased hopes for an early election and potentially the return of more market friendly policies.
At the same time, the key index has seemingly found support at around the 1,520 level that could serve as a springboard for more near-term upsides.
While the upside odds have improved, the lack of market following could still curtail the gains as follow through buying interest remains low.
Therefore, any recovery could be measured for the time being with the first hurdle pegged at the 1,530 level, before the 1,540 resistance comes into play.
On the other hand, the 1,520 level is the immediate support followed by 1,515 points.
Malacca Securities Research
The FBM KLCI saw marginal gains on Friday as persistent selling pressure in glove counters offset the gains in telecommunication heavyweights.
Given the Melaka state election has concluded, we believe buying interest may resume on the local bourse.
However, the upside might be limited given concerns over the resurgence of COVID-19 cases in European countries may potentially dampen economic recovery prospect going forward.
Meanwhile, the decline in crude oil price below US$80/barrel could trigger some selling pressure in the energy sector. However, crude oil price (CPO) is hovering around the RM5,000 zone.
The FBM KLCI staged a mild rebound but still hovering below the daily EMA9 level amid lacklustre trading. Technical indicators remained negative as the MACD Histogram has extended a negative bar while the RSI is below 50.
The support level remained at 1,510 while the next resistance is pegged along 1,540-1,550. – Nov 22, 2021
