BELOW are excerpts of viewpoints from two selected research houses on what investors can expect in the day ahead:
Malaysian stocks remain on the slide as escalated selling pushed the key index close to the 1,400 points again last Friday even as the now superseded Budget 2023 was announced.
Sentiments stayed insipid alongside the weakness of regional indices that led to the increased selling, particularly from foreign players.
Lower liners and broader market shares were also similarly affected with market breadth remained on the negative side. Also, the cautiousness caused market interest to wane further.
Friday’s budget announcement has become an exercise of futility as Parliament has been dissolved to make way for the 15th General Election (GE15).
As such, the budget has also become a non-factor with market players now eyeing the upcoming election for impetus.
The market is likely to stay cautious for the time being. With most overseas bourses also retreating, the FBM KLCI is likely to mirror such performance at the start of holiday shortened week with global economic concerns to continue dictating the equity markets’ performances.
This also leaves the 1,400 level under threat again given that selling is likely to be sustained. If that level gives way, the next supports are at the 1,393-1,397 levels. On the upside, the hurdles are at 1,413 and 1,420 points respectively.
Malacca Securities Research
Another wave of selling pressure hit the FBM KLCI on Friday as investors mulled over the Budget 2023 and bearish sentiment on the regional markets.
We believe all eyes will turn to the upcoming GE15 following the dissolution of Parliament announced yesterday.
The broad market may trade lower given the uncertainties ahead of the GE15 while foreign investors may extend their selling activities from last week.
Commodities-wise, Brent crude price sustained above the US$94/barrel mark while crude palm oil (CPO) price continued to hover above RM3,750/metric tonne.
The FBM KLCI tumbled to close below its daily EMA9 level after spending the entire session in the negative territory.
Technical indicators remained mixed as the MACD Histogram extended a positive bar while the RSI hovered below 50. The resistance is pegged along 1,430-1,450 while the support is pegged at 1,385-1,400. – Oct 11, 2022