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 ended the day marginally lower with late selling wiping out its intraday gains. This also prolonged the key index’s inability find any meaningful traction to move it higher.
Instead, the drifting mode continued with institutional funds being the main sellers for the day.
Market breadth also stayed negative with many lower liners and broader market shares in the red due to the increased selling. Meanwhile, the day’s traded volumes tipped back above the 3 billion mark.
There is still little to suggest that the FBM KLCI will move out of its sideway trend and that the trend looks to continue amid the lack of fresh leads to entice more players to make a return to the market.
As a result, buying interest is likely to stay insipid, hence keeping most market players on the sidelines as they continue to be on the lookout for cues.
The FBM KLCI’s drifting mode is also likely to see it trend within the 1,520 and 1,530 levels for now while this could serve as a base building process for the year-end window dressing activities (which we think could be mild due to the prevailing cautious market undertone that may even prolong into the start of next year).
Malacca Securities Research
The FBM KLCI was flat after fluctuating between the positive and negative territories as the market remains cautious on the back of gradual rise in COVID-19 cases.
Meanwhile, the November Federal Reserve meeting minutes may point to a sooner-than-expected tightening of monetary policy if the inflationary concerns persist.
Closer to home, investors should monitor Malaysia’s inflation rate which will be released later today as this might impact market’s direction going forward.
The opening of the vaccinated travel lanes (VTL) between Malaysia and Singapore on Nov 29, may trigger selected buying interest on recovery theme stocks.
On the commodity markets, crude palm oil (CPO) price rose above RM4,900 while crude oil remained supported above the US$82/barrel mark.
The FBM KLCI ended almost flat as the key index continued to hover below EMA9. Technical indicators remained negative with the MACD Histogram having extended a negative bar while the RSI is still hovering below the 50 level.
The key index may continue to trade around the support at 1,520 with the resistance along 1,540-1,550. – Nov 25, 2021
