BELOW are excerpts of viewpoints from two selected research houses on what investors can expect in the day ahead:
Inter-Pacific Research
Market conditions stayed blasé yesterday with the FBM KLCI going nowhere as most market players opted to stay on the sidelines ahead of the Budget 2022 announcement at the end of the week.
As there were also few noteworthy leads to entice fresh buying, stocks continued to drift lower with the day’s total losing stocks still ahead of winning stocks on thin traded volumes.
Expectedly, many lower liners and broader market shares stayed lacklustre amid the waning interest.
The directionless trend looks to continue over the near term as there are still few catalysts for market players to follow.
As it is, investor interest has waned and many market players are likely to retain their wait-and-see stance ahead of the Budget 2022 announcement to see if new leads will be available.
With fresh buying waning, the downside bias also looks to stay and may still preserve the mild profit taking activities for the time being.
Nevertheless, there should also be some bargain hunting that should keep the market afloat to leave the 1,580 level the key support for now.
Below that, the support is at 1,575 points while the immediate resistance is at 1,590 points, followed by the psychological 1,600 level which also appears to be a major hurdle for the key index to clear.
Malacca Securities Research
The FBM KLCI’s gains faded in the final trading hour, leaving the key index in the negative territory as trading remained lacklustre ahead of the tabling of Budget 2022.
Nevertheless, tracking the strong gains from the overnight Wall Street, we believe bargain hunting activities may surface on the local bourse.
Also, foreign investors continued to stay as net buyers over the past five trading days. We expect trading focus to surround on the potential beneficiaries in the upcoming Budget 2022.
Both the crude palm oil (CPO) and Brent oil prices staged a rebound as energy crunch persists while gold crossed above US$1,800 mark.
The FBM KLCI staged a marginal loss yesterday as the key index closed slightly below the daily EMA9 level.
Technical indicators were slightly mixed with MACD Histogram turning softer but the RSI is hovering above 50. Resistance is pegged at 1,600 while the support is envisaged along 1,580. – Oct 26, 2021
