BELOW are excerpts of viewpoints from two selected research houses on what investors can expect in the day ahead:
Malaysian stocks regained traction yesterday and climbed past the 1,450 level on fresh buying interest from foreign funds that also lifted the key index to its highest level in a month.
Rotational buying on healthcare and telco shares also spurred the FBM KLCI higher while lower liners and broader market shares also made further headway as market interest also picked up with traded volumes rising past the 2.5 billion shares.
As a result, market breadth also returned to the positive side.
Local market conditions are still staying relatively calm as market players cast aside the ongoing global headwinds to continue picking up some of the recently beaten down market leaders.
Rotational buying interest is also prevalent by enabling the key index to regain more than 80 points from its September low.
As conditions veer towards the toppish levels, there could be increased choppiness ahead as market activities are likely to turn mixed again with the upsides to be punctuated by profit taking activities as market players could opt to lock-in some of the recent gains.
This could keep the upsides modest with the 1,460 level becoming a formidable near-term hurdle. Following that, the next resistance is at the 1,465 level while the 1,450 level is the immediate support, followed by the 1,444 level.
Malacca Securities Research
The FBM KLCI rallied higher in tandem with most of the regional markets as telecommunications, plantation, and healthcare heavyweights in focus.
As Wall Street hit the resistance by taking a breather after the significant rebound over the past two weeks after investors digested weaker earnings from big technology giants, we expect the negative sentiment to spill over to the regional and local bourses.
Commodities-wise, Brent crude price surged above US$95/barrel boosted by the US record exports as well as weaker greenback while crude palm oil (CPO) price hovered above RM4,190/metric tonne.
The FBM KLCI rebounded and surged above its daily EMA60 level. Technical indicators remained positive as the MACD Histogram extended a positive bar while the RSI hovered above 50.
Resistance is envisaged along 1,465-1,485 while the support is set at 1,420-1,430. – Oct 27, 2022