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 did well to claw back most of its intraday losses with buying support from local buyers cushioning the selling from institutional funds.
As it is, there was still little resolve to the formation of a new government and as a consequence, sin stocks took a beating.
Selling activity yesterday also extended to lower liners and broader market shares with market breadth remaining in the negative territory. Traded volumes rose but was still deemed to be moderate.
With the continuing political impasse, choppy market conditions are likely to persist for the time being.
As it is, market sentiments will stay cautious at least until a new coalition government is established. In the interim, this could also see sin stocks remaining volatile with the overall downside bias to sustain amid the continuing wait-and-see stance.
Therefore, the market could react according to the political developments as the political parties submit the name of their choice of Prime Minister (PM) to the Yang-di-Pertuan Agong by mid-afternoon.
This could still see the key index heading towards the 1,440 support with the ensuing supports at the 1,430-1,434 levels. On the other hand, the immediate resistance is the 1,450 level, followed by the 1,458 level.
Malacca Securities Research
The FBM KLCI reversed lower as investors await the formation of the new government; foreign investors remained as net seller for the fourth session.
The local bourse may stay in the consolidation mode with the focus on the political scene while eyeing the nomination of the next PM candidate.
Meanwhile, global sentiment was dampened by worries over global growth slowdown after China imposed a stricter COVID-19 curbs.
Commodities-wise, the Brent crude price stayed above US$87/barrel after rebounding from the low around US$82/barrel while crude palm oil (CPO) price hovered near RM3,850/metric tonne.
The FBM KLCI ended marginally lower with the key index closing below its daily EMA20 level. Technical indicators were mixed as the MACD Histogram formed a negative bar while the RSI hovered above 50.
Resistance is envisaged along 1,480-1,500 while the support is set at 1,420-1,430. – Nov 22, 2022
