BELOW are excerpts of viewpoints from two selected research houses on what investors can expect in the day ahead:
Inter-Pacific Research
After a relatively lacklustre day, the FBM KLCI managed to end the day on a positive side with a last-minute haul on selective index heavyweights to extend its winning streak as well as to buck the region’s mostly weaker trend.
Healthcare stocks were again the big movers with many lower liners and broader market shares also making headway. Expectedly, market breadth stayed positive with traded volumes continue to improve.
The near-term outlook is still mildly positive as calmer global market environment is helping to also shore up confidence in Malaysian equities.
As a result, the FBM KLCI is likely to maintain its upward streak heading into the New Year with the nibbling on previously beaten down sector leaders to also continue.
However, profit taking activities may also remain a feature following the recent gains. Henceforth, the choppy trend my stay and slowing the key index’s ascend as follow through buying is still weak due to the prevailing low participation rate.
Therefore, the 1,550 level may become a formidable level to breach over the near-term as market conditions are approaching toppish territory.
Above the 1,550 level, the next hurdle is at 1,561 points while the supports are at 1,540 and 1,535 points respectively.
Malacca Securities Research
Another positive day with the FBM KLCI lifted by the window dressing activities on selected telco heavyweights.
Meanwhile, the Omicron CVOID-19 variant fears are returning which has dampened sentiment on global equities.
Hence, tracking the mixed situation on the global front, we expect profit taking activities to emerge.
Nevertheless, we expect the downside risk to be limited as our current valuation is below the 10Y average PE, our vaccination rate is relatively high as compared to other nations as well as on-going window dressing activities should support local stocks at least for the near term.
The FBM KLCI managed to hold above the daily EMA120 level after closing at its intraday high. Technical indicators remained positive as the MACD Histogram has extended a positive bar while the RSI is hovering above the 50 level.
The resistance is set at 1,560 while the support is pegged along 1,520-1,530. – Dec 30, 2021
