BELOW are excerpts of viewpoints from two selected research houses on what investors can expect in the day ahead:
Inter-Pacific Research
The key index ended the first trading day of 2022 lower in the aftermath of window dressing activities last Friday.
Healthcare and telco stocks were the main losers on profit taking but market breadth stayed positive as there were fresh buying interest among the lower liners and broader market shares that helped most stocks to stay positive.
Traded volumes also picked up slightly as market interest returned following the re-introduction of a stamp duty cap on equity transactions.
Despite yesterday’s losses, the key index has largely found support at the 1,550 level which could help to form a higher base for further near-term upsides.
With overseas equities still on an uptrend on hopes that the Omicron variant would not derail the world’s economic performance, the positivity among global equities should also permeate to Bursa Malaysia, thus allowing the key index to stage a quick rebound despite the still slightly toppish conditions.
At the same time, the Malaysia equity market outlook has firmed up on the prognosis that the pandemic conditions will continue to ease even as the Omicron variant is still a threat.
With the key index tipped for a quick rebound, the targets are set at 1,560 and 1,567 points while supports are pegged at 1,545 and 1,540 points respectively.
Malacca Securities Research
The FBM KLCI declined in the first trading session of 2022 on the back of profit taking activities after the year-end window dressing move.
However, we believe market sentiment may turn positive tracking the overnight solid performance on Wall Street as well as the IHS Market Malaysia PMI which rose 0.5 month-on-month to 52.8 in December 202, suggesting an improving condition in the manufacturing sector.
Nevertheless, investors should continue monitoring global inflation, interest rate and any unpredicted risk arising from COVID-19 variants.
On the commodities market, crude palm oil (CPO) price rose above RM4,800/metric tonne while crude oil price is hovering above the US$78/barrel mark.
The FBM KLCI staged a pullback after a strong rally in the previous session to return below the SMA200 level. Technical indicators were mixed as the MACD Histogram has extended a positive bar while the RSI hovered above the oversold 70 level.
Investors may find support at 1,530 while the resistance is pegged along 1,560. – Jan 4, 2022
