BELOW are excerpts of viewpoints from two selected research houses on what investors can expect in the day ahead:
Inter-Pacific Research
Although the key index managed to regain some ground yesterday, the broad market environment was relatively subdued with buying interest remaining thin due to the lack of leads.
It was left to selective buying on index heavyweights, mainly from overseas funds, to help the key index end the day on a positive note while the broader market was mostly lower due to the lack of following.
As a result, losers were still ahead of gainers with traded volumes staying lacklustre.
We see the near-term outlook remaining insipid as positive leads are still far and in-between that would leave most investors on the sidelines for now.
As it is, market players are still scouring for noteworthy leads to follow and would now be looking to the upcoming reporting season for cues.
In the interim, market participation is also likely to remain modest, thus preserving the broadly sideway trend for longer as both bargain hunting and trading activities are likely to remain light amid the lack of leads.
Therefore, the FBM KLCI is likely to hover within a tight range of 1,530 and 1,540 levels for now while the other support and resistance levels are at 1,520 and 1,550 points respectively.
Malacca Securities Research
Despite lacklustre trading activities on the local front, we noticed that foreign funds have been buying into local equities over the past two trading days.
However, we expect the broader market to trade in a range-bound mode while investors are keeping an eye on the unemployment rate and the gross domestic product (GDP) growth rate which will be released today and Friday respectively.
Also, we expect market players to trade on a cautious manner ahead of the Melaka state election.
Meanwhile, the Malaysia-Singapore quarantine-free travel lane will be launched for fully-vaccinated citizens on end-November, signalling a brighter prospect for aviation, tourism and consumer sectors.
Commodities-wise, both crude palm oil (CPO) and crude oil prices advanced.
The FBM KLCI registered tiny gains for the second trading session but the key index continued hovering below the SMA100 level. Technical indicators remained negative as the MACD Histogram has extended a negative bar while the RSI hovered below the 50 level.
The resistance is envisaged along 1,550-1,560 while support is pegged at 1,520. – Nov 9, 2021
