BELOW are excerpts of viewpoints from two selected research houses on what investors can expect in the day ahead:
Inter-Pacific Research
Although the key index made a pass at the 1,500 level, it failed to hold as the key index stocks retreated on steeper-than-expected profit taking that also dampened its window dressing activities.
However, the lower liners and broader market shares extended their recovery with mild upsides that helped market breadth to stay positive.
Technology stocks emerged as the main movers for the day on continuing bargain hunting, but traded volumes were lower, falling back below the four billion shares level.
With quick profit taking emerging, the FBM KLCI is in a state of flux again and may remain subdued for longer.
Despite the slight improvement in market sentiments, there is still a lack of fresh buying to sustain an upward trend as many market players are still cautious and keeping their wait-and- see stance.
As a result, the key index could again be in a drifting mode with the lack of leads also prolonging the indifferent trend.
This may also see the FBM KLCI staying close to the 1,500 level as it looks to build up a base following its recent retreat that has also left it at the lowest level since August last year.
Apart from the 1,500 level, the other resistances are at the 1,507-1,510 levels. The supports, meanwhile, are at 1,490 and 1,483 points respectively.
Malacca Securities Research
The FBM KLCI ended marginally lower, bucking the upbeat momentum across regional bourses after Wall Street’s rally.
However, we believe there will be bargain hunting activities moving into mid-December with greater focus on heavyweights and technology sectors given their earnings visibility amid COVID-19 woes as well as potential window dressing activities towards year end.
Nevertheless, sentiment may remain cautiously optimistic while the market monitors the severity of the COVID-19 Omicron variant as well as with the Federal Open Market Committee (FOMC) meeting outcome next week.
Commodities-wise, crude oil price continues to hover above the US$75/barrel mark while crude palm oil (CPO) price saw mild decline.
The FBM KLCI dipped as selling pressure emerged in the final trading hour. Technical indicators remained negative as the MACD Histogram has extended a negative bar while the RSI is hovering below the 50 level.
The support level is located at 1,480 while the resistance is pegged along 1,500-1,520. – Dec 9, 2021
