BELOW are excerpts of viewpoints from two selected research houses on what investors can expect in the day ahead:
Inter-Pacific Research
After some early profit taking, the FBM KLCI managed to make headway late in the session as bargain hunting activities returned to lift the benchmark index to the 1,500 level at the close.
The recovery was also helped by the release of the country’s positive manufacturing data.
Nevertheless, market breadth turned negative despite traded volumes shooting up above the 6 billion mark on the return of selling activities with many of the lower liners and broader market shares retreating, particularly technology stocks.
We see the key index remaining close to the 1,550 level for the time being with continuing support on some of the index-linked counters as the portfolio re-alignment activities are still unfolding.
At the same time, there are still few impetuses for market players to follow and this could see the key index staying largely range-bound for now.
With little selling pressure, this could also help the key index to find some measure of stability, thus enabling the FBM KLCI to trend within the 1,540 and 1,560 levels over the near term.
The other support and resistance levels are pegged at 1,535 and 1,556 points respectively.
Malacca Securities Research
The FBM KLCI notched higher after shaking off earlier losses amid bargain hunting activities in selected banking and industrial products & services heavyweights.
Tracking the performance on Wall Street, we expect market to open with a knee jerk sell-off as the market may price in further risk on interest rate hike environment.
Nevertheless, we are optimistic that bargain hunting activities will return to support the heavyweights. Meanwhile, market players will be monitoring the release of US inflation rate tomorrow.
Commodities-wise, crude palm oil (CPO) is trading near RM5,000/metric tonne while the Brent crude is hovering above US$80/barrel.
The FBM KLCI extended its gains from the previous week as the key index stayed firmly above the daily EMA9 level. Technical indicators remained positive as the MACD Histogram remained flat while the RSI hovered above the 50 level.
The resistance is located at 1,560 while the support level is set at 1,520. – Jan 11, 2022
