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 not only managed to recoup all its intraday losses but to also tip higher with minute gains to end last week on a positive note.
The end-of-day bargain hunting also allowed the key index to hold on to the psychological 1,450 level at the close.
While the key index regained traction, the broader market was still broadly lower with selling activities remaining prevalent. As a result, market breadth stayed negative while traded volumes were little changed for a day earlier.
Despite the key index ending last week on a mildly positive note, market conditions are likely to remain lacklustre, unable to garner sufficient traction to move out of its broadly sideway trend on the lack of catalyst and firmer buying interest.
As a result, the key index is likely to stay moribund and could stay indifferent for longer. The ongoing results reporting season has provided some encouraging results but buying interest remains relatively benign as many market players are still opting to stay on the sidelines for the time being.
Under the prevailing environment, the key index is set to linger within the 1,450 and 1,460 levels for the time being as it may also be looking to build up a base for a potential year-end window dressing next month. The other support and resistance are at 1,444 points and 1,456 points respectively.
Malacca Securities Research
Last week, the FBM KLCI ended softer as profit taking activities kicked in on several index heavyweights as Wall Street traded on a shortened session.
However, we noticed the US stock markets closed positively with a four-week winning streak as the market could be pricing in no more rate hike from the US Federal Reserve going forward as inflationary pressure and jobs data were cooling off.
Meanwhile, we believe the overall Hang Seng Index may turn upwards with several firms from China looking at the Hong Kong Stock Exchange for IPO (initial public offering) listing.
Back on the local front, we believe traders will be focusing on the final week of November reporting season and may position ahead of the window dressing activities in December.
On the commodity markets, Brent crude prices fell near US$80/barrel ahead of the OPEC+ meeting on Nov 30.
The FBM KLCI ended flat and is currently retesting the EMA20 level. The technical readings on the key index are mixed, with the MACD Histogram extending another negative bar while the RSI has maintained above 50. The resistance is pegged around 1,470-1,480 and the support is at 1,440-1,455. – Nov 27, 2023
