BELOW are excerpts of viewpoints from two selected research houses on what investors can expect in the day ahead:
Inter-Pacific Research
Despite the continuing political impasse, the FBM KLCI managed to eke out minute gains to break its downward streak yesterday with local institution and retail players providing the mild buying support as foreign funds were still the net sellers.
Despite the mixed market conditions, energy stocks were again the main movers on the back of the recovering crude oil prices.
Gaining stocks pipped losing ones for the day but traded volumes slipped back to the moderate level.
With the prospects of a unity government looking increasingly likely, sentiments on Bursa Malaysia may improve amid the optimism that a stable government may be formed in due course.
At the same time, market sentiments could also be bolstered by the US Federal Reserve’s inclination towards slower interest rate hikes over the near-to-medium term.
These developments could encourage fresh buying interest after the recent uncertainties and provide the impetuses for a market revival that may see the key index re-challenging the psychological 1,450 level in the near-term.
Beyond this level, the other resistances are at 1,460 and 1,468 points respectively. The supports, meanwhile, are at 1,440 and 1,432 points respectively.
Malacca Securities Research
The FBM KLCI eked out small gains in a volatile session amid mixed sentiment due to the fluid situation on the political scene.
Optimism surrounding the slowdown in rate hikes indicated in the Federal Open Market Committee (FOMC) minutes may spread across the regional markets.
Given the UMNO Supreme Council has given the support to a unity government ensuring the stability of the country, we believe the market may turn more positive.
Meanwhile, investors could shift their focus from politics to Malaysia’s inflation rate and the on-going reporting season.
Commodities-wise, the Brent crude tumbled to around US$85/barrel as the European Union (EU) discussed imposing a price cap on Russian oil between US$65-US$70/barrel. Meanwhile, crude palm oil (CPO) price stayed above RM4,000/metric tonne.
The FBM KLCI edged higher but the key index continued to hover below its daily EMA20 level. Technical indicators turned mixed as the MACD Histogram extended a positive bar while the RSI climbed above 50.
Resistance is monitored along 1,480-1,500 while the support is set at 1,420-1,430. – Nov 24, 2022
