BELOW are excerpts of viewpoints from two selected research houses on what investors can expect in the day ahead:
Inter-Pacific Research
With easing selling pressure, window dressing activities dominated trading instead as index heavyweights were chased up on thin volumes, thus allowing the key index to buck the region’s weaker trend.
Much of the gains were contributed by healthcare stocks like Top Glove Corp Bhd and IHH Healthcare Bhd while many lower liners and broader market shares also rose on mild bargain hunting.
Collectively, these activities helped market breadth to stay positive for the day.
The near-term outlook remains positive, boosted by the easing concerns over the Omicron variant that looks to be much less severe even as it is more contagious.
The gains in key global equity markets overnight could also provide some more upside impetus for Malaysian equities while window dressing activities are likely to continue ahead of the year-end.
Still, the follow through buying strength remains to be seen as market participation has been thin of late.
At the same time, quick profit taking may also materialise that could temper some of the near-term upsides. Therefore, the market environment may become choppier following strong gains over the past few sessions.
The hurdles are now at 1,543 points followed by the 1,550 level. The supports, meanwhile, are at 1,530 and 1,523 points respectively.
Malacca Securities Research
The FBM KLCI was lifted strongly by most of the heavyweights during the window dressing period albeit in a softer trading environment; the healthcare sector was the leader as compared to the other sub-sectors.
Given the positive performance from Wall Street overnight, we expect buying interest to be expected on local equities. Meanwhile, foreign funds are net buyer over the past five trading days; the cumulative five-day trading value stood at RM67.4 mil.
On the commodity markets, Brent crude oil has surged firmly above US$78/barrel while crude palm oil (CPO) price is hovering above RM4,600/metric tonne.
The FBM KLCI extended gains to close above the daily EMA60 level as the key index broke above the prior resistance level at 1,530. Technical indicators remained positive as the MACD Histogram has extended a positive bar while the RSI is hovering above the 50 level.
The next resistance is envisaged at 1,560 while the support is set along 1,500-1,530. – Dec 28, 2021
