BELOW are excerpts of viewpoints from two selected research houses on what investors can expect in the day ahead:
Inter-Pacific Research
There were further gains on Bursa Malaysia yesterday with the continuation of window dressing activities that lifted the key index to the 1,540 level.
It was mainly banking stocks that provided the push for the key index to head higher this time while lower liners and the broader market shares also followed suit.
As a result, most stocks stayed in the positive territory for the day but traded volumes remained thin as most market players are on their year-end holidays.
The improved market sentiments should allow Malaysian equities to make further headway over the near term but also at a slower rate after the key index gained some 4% over the past few sessions.
Bouts of profit taking may emerge even as fresh buying interest is seen that could slow the market’s ascend that has been boosted by the prognosis that the new COVID-19 variant is likely to be less severe.
Meanwhile, rotational interest could also pick up pace as market players switch to laggards of the recent run-up.
The immediate hurdle is at 1,545 points followed by the psychological 1,550 level. On the downside, the supports are pegged at 1,534 and 1,530 points respectively.
Malacca Securities Research
The FBM KLCI was supported on the back of positive regional performance and ongoing window dressing activities.
Although the Omicron variant might be having mild symptoms, lower hospitalisation and death rates, it has caused cancellation of flights in various countries as cases spiked.
However, countries with higher vaccination rate should be able to mitigate the risk of another full lockdown.
Given the mixed feeling on the Omicron worries, we expect mild profit taking activities to emerge on the local front.
Nevertheless, market trading activities might recover with new developments on the share trading stamp duty and that should limit the downside risk on the broader market.
On the commodity markets, Brent crude oil and crude palm oil (CPO) have been trading firmly higher over the past few days.
The FBM KLCI continued its upward move for the fifth straight session to close above the daily EMA120 level. Technical indicators remained positive as the MACD Histogram has extended a positive bar while the RSI is hovering above 50.
The resistance is pegged at 1,560 while the support is set along 1,520-1,530. – Dec 29, 2021
