BELOW are excerpts of viewpoints from two selected research houses on what investors can expect in the day ahead:
Inter-Pacific Research
Malaysian equities, particularly index heavyweights, maintained their near-term upsides by bucking the weakness among regional and global indices.
Rotational buying from local and foreign funds were the main catalysts for the key index to climb its highest level in a month even as total volumes remained tepid.
Conditions elsewhere were also mostly positive as the broader market and lower liners also posted gains and helping gainers to stay ahead of losers for the day.
Fresh buying interest appears to be still prevalent, and this should provide more near-term impetus for the key index to scale higher.
This could also provide some legs for what is seen as a pre-election rally albeit the upsides are more from the key index’s deeply oversold conditions that we also see nearing the top as it approaches the 1,450-level following a near 80-point rebound from the year low of 1,372 points.
The way up could see increased choppiness and may be slowed by profit taking activities as the key index also closes-in on its toppish technical levels.
As such, the 1,450 level could become a substantial hurdle with the ensuing hurdle placed at 1,460 points. The supports, meanwhile, are at 1,436-1,440 levels, followed by 1,430 points.
Malacca Securities Research
The FBM KLCI advanced on Friday, outperforming the mixed regional stock markets prior to the long weekend break as the official 15th General Election (GE15) date was announced.
However, investors should remain cautious amid persisted worries over possible recession in major economies which may cap the upside potential over the near term.
Meanwhile, traders may focus on the European Central Bank’s (ECB) interest rate decision which will be released by end of the week.
Commodities-wise, Brent crude traded above US$93/barrel while crude palm oil (CPO) price hovered above RM4,100/metric tonne.
The FBM KLCI notched gains, closing just below its daily EMA60 level. Market breadth turned positive as the MACD Histogram extended a positive bar while the RSI remained above 50.
Resistance is pegged along 1,460-1,480 while the support is set at 1,415-1,430. – Oct 25, 2022
