BELOW are excerpts of viewpoints from two selected research houses on what investors can expect in the day ahead:
Inter-Pacific Research
Bargain hunting continues to provide the lift for the key index yesterday as foreign institutional players took positions in banking stocks to push the FBM KLCI past the 1,560 level in what was seen as the resumption of portfolio realignment exercises.
There were also pockets of buying in other index heavyweights but market breadth was negative as many broader market and lower liner stocks retreated on profit taking.
Traded volumes also moderated from a day earlier.
After bucking the region’s weaker trend yesterday, the near-term outlook looks healthier and that could provide more upside impetus even as there are still few noteworthy leads.
At the same time, the improved sentiments on Wall Street overnight should also permeate to Malaysian equities and allow for further gains, hence prolonging bargain hunting activities.
This will also allow the key index to fortify its position above the 1,550 level that it cleared two days ago. Still, there could be some choppiness after yesterday’s gains and buying may also ease after three consecutive days of gains.
Therefore, the key index may find the 1,567 level – its recent high – a formidable level to clear for now.
Beyond that level, the next hurdle is at the 1,570 level. Meanwhile, the supports are pegged at 1,556 points and the 1,550 level respectively.
Malacca Securities Research
Propelled by selected banking heavyweights, the FBM KLCI extended its winning streak to the third straight session despite cautious sentiment across the regional bourses.
While investors may be bracing for interest rate hikes and uncertainties in new COVID-19 variant, we expect to see some recovery on the local bourse as sentiment may be lifted by the upcoming National Recovery Plan 2.0.
Besides, the overnight rallies on Wall Street could spill over to the local front.
Commodities-wise, crude oil prices jumped to close above the US$83/barrel mark while crude palm oil (CPO) price remained above RM5,000/metric tonne.
The FBM KLCI closed at intraday high for the second session above the previous resistance at 1,560 and broke above its moving average 200 level.
Technical indicators were positive as the MACD Histogram extended another positive bar while the RSI is hovering above the 50 level.
The next resistance is pegged along 1,580 while the support is located around 1,530. – Jan 12, 2022
