BELOW are excerpts of viewpoints from two selected research houses on what investors can expect in the day ahead:
Inter-Pacific Research
It was yet another down day for the key index with selected banking and oil & gas (O&G) stocks retreating again to extend the FBM KLCI’s consolidation for a third straight day which was also due in part to the lack of leads and weak regional indices.
However, the key index managed to close off its day’s low with mild buying support although losers were still ahead of gainers for the day as conditions of the broader market and lower liners remained mixed.
We still see the market’s undertone staying cautious for the time being with uncertainties over its direction likely to leave most market players on the sidelines for now.
As it is, there remains a dearth of noteworthy domestic leads to attract fresh buying, while market players are also waiting for more tangible results from resumption of the country’s economic activities.
Meanwhile, overseas market events like Evergrande’s defaults and inflationary concerns are also leaving the market in a guarded state and may prolong the insipid market trend.
As such, we think the downside pressure will sustain over the near term which may see the key index retesting the 1,520 level. A breach of this level would see the next supports at 1,515 and 1,510 points coming into play.
The hurdles, meanwhile, are at 1,530 and 1,536 points respectively.
Malacca Securities Research
The FBM KLCI ended marginally lower as foreign funds inflow declined for the session amid mixed regional market performances on the back of concerns over US debt ceiling crisis as well as China Evergrande’s issues.
However, trading interest was noticed in recovery theme sector as recovery is in sight with the adult vaccination rate hitting 88.0% and the number of COVID-19 daily confirmed cases trending lower.
Meanwhile, crude oil price settled above the US$81 per barrel mark as OPEC+ stick to its schedule of gradual monthly output increases. Likewise, crude palm oil (CPO) price stood firmer above the RM4,500 mark.
The FBM KLCI marked its third session of decline as the key index continued to hover below the daily EMA9 level. Technical indicators remained negative as the MACD Histogram has extended another red bar while the RSI is still below the 50 level.
Resistance is located at 1,550-1,560 while the support is pegged along 1,500-1,515. – Oct 5, 2021
