BELOW are excerpts of viewpoints from two selected research houses on what investors can expect in the day ahead:
Inter-Pacific Research
Malaysian equities retreated further in tandem with the regional weakness as well as falling below the 1,500 psychological level again on concerns that the Omicron variant could dent the global economic outlook heading into 2022.
Conditions stayed fragile with selling again dominating trades that saw losers three times more than gainers with only banking stocks being gainers for the day.
Traded volumes, meanwhile, were little changed from the previous trading session.
With market conditions remaining dour, dampened by fears over the new COVID-19 variant and the corresponding lack of new leads, the near-term outlook is likely to remain guarded with most market players opting to stay on the sidelines for the time being.
Nevertheless, the gains on key overseas indices overnight could prompt some mild bargain hunting activities on local stocks.
This could provide some reprieve by helping the FBM KLCI to mount a bounce from its oversold conditions even as fresh buying interest is likely to stay low.
On the upside, the hurdles are at the 1,490 and the 1,500 levels while the supports are at 1,480 and 1,473 points respectively.
Malacca Securities Research
The FBM KLCI surrendered gains from the previous session as sentiment remained weak in line with negative performances on the regional bourses.
However, Wall Street has rebounded strongly overnight with the view that the COVID-19 Omicron variant may cause milder illness than earlier strains; this may provide buying support to the local equities.
Closer to home, we should expect some rebound on the key index as investors may be re-positioning into value stocks or heavyweights moving into the year-end window dressing period.
At the commodity markets, crude oil prices settled 4.6% higher at US$73/barrel after Saudi Arabia raised prices for its crude sold to Asia and the US, while the price of crude palm oil (CPO) saw slight rebound.
The FBM KLCI retreated to close at an intraday low as the key index fell below the key 1,500 level. Technical indicators remained negative as the MACD Histogram has extended a negative bar while the RSI is oversold below 30.
The next support level is located at 1,480 while the resistance is pegged along 1,500-1,520. – Dec 7, 2021
Pic credit: Finance Monthly
