BELOW are excerpts of viewpoints from two selected research houses on what investors can expect in the day ahead:
Inter-Pacific Research
Malaysian equities remained on the uptrend with rotational plays spilling into banking stocks to extend its positive streak for a fifth consecutive session.
There were also renewed buying interest in AirAsia Group Bhd and oil & gas (O&G) stocks with the resumption of interstate and international travel and higher oil prices.
Most stocks were in the green with energy stocks rising the most on surging oil prices. There was also a healthy jump in market participation that rose to nearly 7 billion shares, the highest in four months.
The near-term sanguine outlook remains with market sentiments have improved and the pandemic condition at its tail-end. Most economic activities have re-started which could drive economic recovery in the last quarter of the year into the start of next year.
At the same time, strong commodity prices are further improving sentiments in the plantation and O&G sectors with their stocks set for further gains.
Although the market’s undertone is still firm, we see some hesitation emerging after its extended uptrend streak. Further upsides could become choppier on bouts of quick profit taking that could slow the market’s ascend.
Therefore, the 1,580 level may become a formidable level to breach with the interim hurdle at 1,575 points the more obvious near-term target. The supports, meanwhile, are pegged at the 1,560-1,564 levels.
Malacca Securities Research
The FBM KLCI climbed for another session with banking stocks leading the way as investors’ sentiment turned more positive following the Government’s announcement on interstate border re-opening over the weekend.
Despite the selling pressure on Wall Street, we expect foreign funds that has continuously been buying into the local equities – coupled with the firmer commodity prices in crude oil and crude palm oil (CPO) – to provide a healthy sentiment to the local exchange over the near term.
Crude oil price was traded above US$83 per barrel mark while CPO price is consolidating around the all-time-high region.
As Malaysia is ready to enter the endemic phase, prospects of the economic recovery should persist and positive momentum could continue at least for the near term.
The FBM KLCI started the week on an upbeat mode as the key index touched the SMA 200 level before closing above 1,570.
Technical indicators remained positive as the MACD Histogram has extended a green bar while the RSI is above 50. The resistance is pegged along 1,580-1,600 while the support is located at 1,550. – Oct 12, 2021
