BELOW are excerpts of viewpoints from two selected research houses on what investors can expect in the day ahead:
Inter-Pacific Research
Bargain hunting activities helped to shore up the FBM KLCI yesterday, allowing it to close at the psychological 1,500 level as it rode on the more positive undertone of many global equity indices.
There were also some window dressing activities with the positivity also extending to the broader market shares.
Collectively, this helped traded volumes to climb back above the 3 billion shares mark while market breadth also stayed positive.
Market sentiments have improved amid reports that the Omicron variant is less damaging which helps to ease the risk of a more severe impact on the global economy.
In addition to the potentially milder impact, the overnight gains on key global equity indices will provide further near-term impetus for the FBM KLCI to move ahead of the 1,500 level.
Much of the gains may emanate from the sustained bargain hunting following the key index’s recent pullback.
At the same time, the improved outlook could also prompt further window dressing activities ahead of the Christmas break with the key index set to pass the immediate resistance at 1,503 points.
Thereafter, the key index could target 1,510 level while the supports are at 1,497 and 1,490 points respectively.
Malacca Securities Research
Overall market conditions have improved on the local front with the FBM KLCI able to close above the 1,500 level thanks to the glove heavyweights.
Meanwhile, Wall Street gained momentum overnight, rebounding for the second consecutive day amid the fading concerns over COVID-19 Omicron variant given that the hospitalisation rate and symptoms are much milder as compared to the Delta variant.
Hence, we believe that buying interest would pick up further on our local equities generally. Also, we have noticed several stocks are undergoing window dressing activities which may last until year-end.
On the commodity markets, prices gained traction with Brent crude hovering above US$75/barrel while crude palm oil (CPO) is trading above RM4,500/metric tonne.
The FBM KLCI has risen above the key 1,500 psychological level. The technical indicators are suggesting that the momentum could be picking up with the Histogram extended another positive bar while the RSI is approaching 50 level.
The resistance is located around 1,510-1,530. Meanwhile, the support is envisaged around the 1,480 zone. – Dec 23, 2
