BELOW are excerpts of viewpoints from two selected research houses on what investors can expect in the day ahead:
Inter-Pacific Research
It was another meek day on Bursa Malaysia as the key index continues to retreat and falling below the 1,550 level in the process.
This came about on rising concerns that global central banks will be more aggressive in their fiscal tightening to curb inflation, sending most equities lower.
Lower liners and broader market shares were also sent lower with losers again dominating gainers but technology stocks were able to buck the generally weaker market trend.
The near-term market outlook is likely to stay dour, shaded by sell-off in global equities that has permeated to the local market on fiscal tightening fears.
This will continue to dampen interest in equities with selling and profit taking activities set to resume after yesterday’s market closure.
With market sentiments already turned negative, this could continue to weigh on market performance for a longer period.
Glovemaker stocks may endure further weakness as sentiments on these stocks turned lower following Supermax Corp Bhd’s contract termination.
With the 1,550 level breached, the next supports are now pegged at 1,530-1,534 points, followed by the 1,520 level.
The hurdles, meanwhile, are set at 1,550 points and 1,555 points respectively.
Malacca Securities Research
The FBM KLCI sank for another session on Monday as investors took profit in selected heavyweights prior to the Thaipusam holiday despite a positive cue from China’s stronger-than-expected economic growth in 2021.
We think the volatility may continue in the market over the near term while investors monitor for new developments of interest rate movement in the US.
Meanwhile technology counters might see another slump following the overnight tumble in Nasdaq.
Commodities-wise, crude palm oil (CPO) price back above RM5,000/metric tonne while the Brent crude price climbed above the US$87/barrel mark.
The FBM KLCI extended losses and closed below the SMA200 and daily EMA9 level. Technical indicators, however, remained positive as the MACD Histogram has extended a positive bar, while the RSI hovered above the 50 level.
Investors may watch the support set at 1,530 while resistance is located at 1,580. – Jan 19, 2022
