BELOW are excerpts of viewpoints from two selected research houses on what investors can expect in the day ahead:
Inter-Pacific Research
There was volatility on the FBM KLCI yesterday but it ended the day on a positive note, boosted by end-of-day haul on selected index-linked stocks to stay above the 1,480 level.
There was bargain hunting on glove maker stocks as they emerged as the day’s biggest movers. Many lower liners and broader market shares also rose which helped market breadth to turn slightly positive.
However, traded volumes were little changed from a day earlier.
There is little change to the mostly indifferent near-term outlook due to the lack of investor participation and a still largely cautious market undertone.
However, with selling pressure easing, this could allow for bouts of window dressing to emerge as the market rides on overnight gains in key global stock indices that would also allow market players to temporarily cast aside concerns over the pandemic conditions and potentially slower earnings growth next year.
This would also allow the key index to fortify its position above the 1,480 level as it also looks to head towards the next hurdle at the 1,490 level. Thereafter, the psychological 1,500 level will be the resistance.
Meanwhile, the 1,480 level is the immediate support followed by the 1,475 level.
Malacca Securities Research
The FBM KLCI ended marginally higher after erasing all its intraday losses as banking and healthcare heavyweights led the rebound prior to the outcome of the Federal Open Market Committee (FOMC) meeting.
Despite the Fed signalling a quicker pace of taper and three rate hikes in 2022 to fight inflation, Wall Street rebounded and cheered positively on the move.
We believe buying interest may spill-over towards the local front, especially on technology stocks, mirroring the movement on Nasdaq.
Crude oil price rebounded marginally to stay above US$73/barrel mark while crude palm oil (CPO) price extended losses.
The FBM KLCI saw slight rebound but the key index remained below its previous support level at 1,485.
Technical indicators remained mixed as the Histogram has extended a positive bar while the RSI hovered below the 50 level. Support is pegged at 1,450 while resistance is envisaged along 1,485-1,500. – Dec 16, 2021
