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 closed relatively unchanged yesterday as market conditions turned warier following the weakness on Wall Street the day before.
Although many stocks were sideways, travel-related stocks rose after the Government announced the re-opening of the country’s borders.
Elsewhere, conditions were also mixed with market breadth almost equal with traded volumes on the relatively low side.
Malaysian equities were largely on a holding pattern yesterday and this could be the springboard for further near-term gains as it looks to follow the upsides on key global indices overnight.
There should be further bargain hunting as the market’s undertone remains on the recovery track that should also help to shore up sentiments on the local equity market.
This should provide the impetus for further short-term gains ahead of the release of more corporate results in the coming weeks with the key index targeting the next hurdle at the 1,535-1,540 levels.
Thereafter, it could aim for the 1,543 level. On the downside, the supports are at 1,527 and 1,520 points respectively.
Malacca Securities Research
Following the gains on Wall Street overnight, we reckon that recovery may resume on a tepid manner as gains will be capped by the lack of fresh local leads.
On a brighter note, the unemployment rate continues to demonstrate improvement, falling to 4.2% in December 2021 with prospect of the economic recovery being largely on track.
Meanwhile, the upcoming batch of corporate earnings will be followed closely as it may provide signs of earnings recovery as majority of the states moved into Phase 4 of the National Recovery Plan in 4Q 2021.
The FBM KLCI ended on a flattish note but maintained above the 1,530 and the daily EMA 60 level. Technical indicators stayed positive as the MACD remained above the zero level, while the RSI hovered marginally above 50.
The immediate resistances are located at the 1545-1,570 while support is set around 1,520, followed by 1,500. – Feb 9, 2022
