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 was again listless as it trended within a tight range due to the lack of catalysts even as it managed to end the day on a positive note yesterday.
For the most part, trading was lacklustre with a last-minute pick-up on selected index heavyweights that allowed the key index to end higher.
On the other hand, lower liners and broader market shares saw increased selling that caused market breadth to stay decidedly negative.
The market’s indifference is likely to persist for the foreseeable future as there is still a shortage of leads to encourage greater market participation.
As it is, there are still lingering uncertainties over the market’s direction with concerns over corporate earnings performance in 2022 as well as the impending increase in equity transaction cost keeping most market players disinterested.
At the same time, there are also few outperformances in the ongoing results reporting season to lift the interest of market players.
Therefore, the key index is likely to remain range-bound for now, trending with the 1,520 and 1,530 levels over the near term. The other support and resistance levels remain at 1,515 and 1,540 points respectively
Malacca Securities Research
The FBM KLCI finished at intra-day high, snapping a two-day decline amid buying interest in the final trading hour.
However, we believe investors may remain cautious over the near term while awaiting more corporate earnings reports as well as further guidance from the US Federal Reserve on monetary policies going forward (market players might be speculating for an earlier interest rate hike).
Meanwhile, selling pressure in oil and gas (O&G) counters mounted following OPEC chief’s comment over possible oil surplus over the near term which contributed to a decline in oil prices overnight although still hovering above US$80/barrel mark. Meanwhile, crude palm oil (CPO) is re-testing the RM4,900 level.
The FBM KLCI inched up yesterday by being supported above the 1,520 level. Technical indicators remained negative as the MACD Histogram has extended a negative bar while the RSI hovered below the 50 level.
The resistance is pegged along 1,540-1,550 while the support is located around 1,500-1,520. – Nov 18, 2021
