BELOW are excerpts of viewpoints from two selected research houses on what investors can expect in the day ahead:
Inter-Pacific Research
There was no follow through buying support from last Friday with market conditions quickly returning to indifference at the start of the week.
Gaming stocks were hit by news that Kedah will ban numbers forecast outlets while banking stocks saw quick profit taking.
Similar conditions were seen in the broader market as market breath turned negative again with buying interest evaporated in the absence of fresh leads. Meanwhile, traded volumes remained moderate.
With the market still devoid of fresh leads and conditions remaining insipid, the key index is likely to drift further with the downside bias also remaining in play.
As it is, the broad market conditions are still cagey with market players still looking for more credible impetuses to appear before making a decision on their next course of action.
In the meantime, most market players will likely remain on the sidelines with the lack of fresh buying likely to prolong the ongoing market indifference.
Nevertheless, the ongoing results reporting season could provide some impetus although the lack of follow through could also curtail their upsides.
As such, we think the FBM KLCI is likely to linger within the 1,520 and 1,530 levels for the time being with the other support and resistance levels at 1,515 and 1,540 points respectively.
Malacca Securities Research
The FBM KLCI’s rebound was short lived as the benchmark index surrendered yet another round of gains from the previous session to profit taking activities in selected heavyweights.
Although R-naught in Malaysia for COVID-19 is rising, we believe it should be well contained as vaccination rate has been improving gradually.
Hence, we opine that the resumption of business activities and reopening of travel borders may bode well for the economy going forward.
Investors could find opportunities in recently beaten-down technology and consumer-related counters amid the earning seasons for bargain hunting opportunities.
Meanwhile, crude palm oil (CPO) price is still hovering below the RM5,000 mark while crude oil and gold prices declined.
The FBM KLCI retreated but still hovering below the 1,520 support level. Technical indicators remained negative as the MACD Histogram has extended a negative bar while the RSI hovered below the 50 level.
The support level is located at 1,520 followed by 1,500 while the next resistance is pegged along 1,540-1,550. – Nov 16, 2021
