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 is still seeing profit taking activities that resulted in it ending with another down day albeit the losses were minute.
For the most part, market conditions remained dreary with few buying impetuses ahead of the unveiling of Budget 2022 tomorrow.
Consequently, losers still have the upper hand against gainers by a wide margin with most of the lower liners and broader market shares also ending the day on a downbeat note.
The near-term outlook is likely to remain insipid as market players will be eyeing Budget 2022 for fresh leads.
Until then, the directionless trading could prevail with the downside bias also set to remain a feature with the continuing mild profit taking actions.
At the same time, market participation is still relatively unchanged and remaining at low levels that could further leave the FBM KLCI on its drifting mode.
Still, the downsides look to be benign as there is little urgency to sell and this could allow stocks to find some measure of support.
As such, the FBM KLCI is likely to remain above the 1,580 support while the next support remains at 1,575 points. The 1,600 level is still the main near-term hurdle with an interim resistance at the 1,590 level.
Malacca Securities Research
The FBM KLCI moved a tad lower in tandem with its regional peers as investors jittered over China’s property market, re-surfacing US-China tensions as well as inflationary concerns going forward.
However, we believe trading interest on the local front will be focusing on the Budget 2022 themes and buying support from foreign investors.
We expect Redtone Digital Bhd’s news on the telco to spur buying support into telco-related stocks while construction and property sectors may be rebounding higher prior to the Budget 2022.
Commodities-wise, both crude palm oil (CPO) and crude oil prices declined while gold price rebounded.
The FBM KLCI failed to hold above its daily EMA 9 level as the key index slipped into the negative territory in the afternoon trading session. Technical indicators remained mixed as the MACD Histogram gravitated further below the zero line while the RSI is still hovering above the 50 level.
The support level is located at 1,570-1,580 while the resistance level is set around 1,600-1,620. – Oct 28, 2021
