BELOW are excerpts of viewpoints from two selected research houses on what investors can expect in the day ahead:
Quick profit taking activities permeated the market last Friday to erase some of the big gains attained a day earlier when the new Prime Minister (PM) was sworn in.
In the process, the key index slipped back below the 1,500 level again with most sector indices also ending lower, including lower liners that also succumbed to profit taking activities ahead of the extended weekend.
Expectedly, market breadth turned negative with trading volumes also slipping by more than a third.
Although optimism over the appointment of a populist PM will continue to be well-received by the market, the near-term market conditions could turn choppier on the back of the fresh concerns over China’s manufacturing output following increased COVID-19 lockdowns and social unrest in China that could again disrupt the global supply chain.
Already, global equities have reacted negatively to the above developments that may also permeate to Malaysian equities and extend the profit taking action over the near term.
Therefore, the near-term outlook still looks precarious as the key index attempts to stay close to the psychological 1,500 level with the immediate support and resistance levels at 1,480 points and 1,495 points respectively.
The other support is at 1,470 points while the 1,500 level is the ensuing resistance
Malacca Securities Research
The FBM KLCI retreated on Friday as broad-based profit taking activities emerged ahead of the long weekend.
The global stock markets started the week largely in a weaker note as protest over China’s strict COVID-19 restriction stoked worries over the global financial recovery.
The local bourse may follow suit as buying momentum may slow down moving while focusing on the ongoing earnings season.
Meanwhile, investors may watch the formation of the cabinet in the near future as well as the re-tabling of Budget 2023.
Commodities-wise, Brent crude oil price fell towards US$83/barrel while crude palm oil (CPO) price hovered above RM4,100/metric tonne.
The FBM KLCI slipped below the key 1,500 level amid profit taking activities. Technical indicators, however turned positive with the MACD Histogram rising above zero while the RSI is hovering above 50.
Resistance is pegged along 1,520-1,530 while the support is located at 1,430-1,450. – Nov 29, 2022