BELOW are excerpts of viewpoints from two selected research houses on what investors can expect in the day ahead:
Inter-Pacific Research
An early attempt to lift stocks into the positive territory fizzled out as the day wore on with the key index finally ended the day lower at the 1,380 level.
There were, however, pockets of positivity as healthcare, financial and transport stocks recovered from their steep falls a day earlier.
Broader market shares were mixed-to-lower on the lack of interest with the day’s total trades slipping below the 2 billion shares mark again while market breadth stayed negative.
Market conditions are likely to remain insipid, weighing down by the ongoing global headwinds and cautiousness over the impending 15th General Election (GE15) that could keep investors on the sidelines for longer.
The still weakening ringgit could also prompt more foreign players to reduce their exposure to Malaysian equities. As such, the downside bias remains with the FBM KLCI still poised for further near-term downsides even as it remains oversold.
However, there could be early signs that a rebound is emerging as the key index may be attempting to find a base around the 1,380 level.
If so, the overdue rebound could provide some reprieve to the market, albeit any rebound is likely to be mild at this juncture due to the low market following.
Below the 1,380 level, the supports are at the 1,370-1,377 levels, followed by the 1,360 level. The resistances, meanwhile, are at the 1,387-1,390 levels with the ensuing hurdle at 1,397 points.
Malacca Securities Research
The FBM KLCI remained lacklustre as the key index marked its fourth-session decline while investors were looking around for fresh catalyst.
As the final-hour sell-down on Wall Street implied persisting concerns over the monthly US CPI (consumer price index) data, we believe the global market may remain volatile in the near term.
Meanwhile, on the local front, we believe that traders are shifting their stance from growth to value stocks, hence we expect some rebound in undervalued stocks with solid fundamentals.
Commodities-wise, Brent crude price staged a pullback to trade above US$92/barrel while crude palm oil (CPO) price hovered above RM3,700/metric tonne.
The FBM KLCI swung lower from the key 1,400 level with the key index hovering below its daily EMA9 level. Technical indicators showed signs of oversold as the MACD Histogram extended a positive bar while the RSI continued holding below 30.
Support is pegged along 1,355-1,365 while resistance is set at 1,400-1,430. – Oct 13, 2022
