BELOW are excerpts of viewpoints from two selected research houses on what investors can expect in the day ahead:
Once again, the FBM KLCI managed to erase its intraday losses to end the day higher on an end-of-day bargain hunting on selective index heavyweights in an otherwise dull trading day.
This time around, it was the telco and plantation counters that led the gains to help the key index to close the day at the 1,480 level, but most lower liners and broader market shares were broadly lower.
As a result, market breadth remained negative with traded volumes also slipping further.
We see market conditions staying insipid over the near-term as buying interest is still tepid and selective due to the lack of catalyst.
At the same time, most market players are still on their year-end break and this is likely to leave the market to drift for the most part.
This may see the key index losing ground again as sentiments remain fraught with uncertainties over the direction of the global economy that resulted in many key global equity indices pulling back overnight.
However, the on-going mild bargain hunting could still emerge to limit the potential of a pullback.
This also means that the 1,480 level remains precarious and if it gives way, the near-term support is lowered to 1,470 points. On the flipside, the hurdles are at 1,483 and 1,490 points respectively.
Malacca Securities Research
The FBM KLCI outperformed the regional peers, driven by year-end window dressing activities and persisting buying from foreign funds (five-day cumulative stood at RM222.3 mil).
However, global sentiment might remain tilted to the downside in view of the overnight slump on Wall Street.
Nevertheless, the local bourse should continue to be supported by year-end window dressing as well as elevated firmer commodities price. Brent crude settled above US$83/barrel, while crude palm oil (CPO) price hovered above RM4,000/metric tonne.
Meanwhile, gold price snapped two-day uptrend but stabilised above US$1,800/oz.
The FBM KLCI closed above its daily EMA9 level for the third straight session. Technical indicators, however, remained mixed as the MACD Histogram extended a negative bar while the RSI is moving higher above the 50 level.
Resistance is pegged along 1,500-1,510 while support is located at 1,450-1,460. – Dec 29, 2022