BELOW are excerpts of viewpoints from two selected research houses on what investors can expect in the day ahead:
Inter-Pacific Research
The FBM KLCI eked-out minor gains in a choppy session yesterday with the gains largely in line with regional indices on optimism that China will re-open its borders soon.
This sustained rotational buying on some of the index heavyweights, but market breadth was mixed as gainers and losers were nearly on parity.
The lower liners and broader market shares were mixed with quick profit taking interjecting the mild bargain hunting activities. However, traded volumes rose to near the 3 billion mark.
There could be further near-term upsides following the positive close on Wall Street overnight, casting aside a still cautious market undertone that is plagued by concerns over rising interest rates and a slower global economy.
Still, market players could use the calmer market conditions to continue bargain-hunt on some of the recently beaten down stocks ahead of the release of the country’s 3Q 2022 gross domestic product (GDP) this Friday (Nov 11).
The sustained upsides could see the key index making an attempt at the immediate resistance at 1,445 points before heading higher to test the psychological 1,450 level. On the downside, the supports are at 1,438-1,440 points, followed by the 1,425 level.
Malacca Securities Research
The FBM KLCI ended a choppy session higher, mainly buoyed by the telecommunication heavyweights as foreign funds returned for the second consecutive day.
While the local bourse may cheer on hopes over China’s re-opening, investors may remain cautiously optimistic as the US inflation data which is due later this week may indicate a prolonged interest rate upcycle environment, adding more risk to the shaky stock market.
Commodities-wise, Brent crude price held above the US$97/barrel mark while crude palm oil (CPO) traded above RM4,400/metric tonne.
The FBM KLCI wrapped up a volatile session in the green as the key index climbed above its daily EMA9 level. Technical indicators were mixed as the MACD Histogram is negative while the RSI hovered above the 50 level.
The resistance is set at 1,465-1,480 while support is envisaged at 1,410-1,420. – Nov 8, 2022
