BELOW are excerpts of viewpoints from two selected research houses on what investors can expect in the day ahead:
Inter-Pacific Research
Malaysian equities lost further ground yesterday with the relative market indifference continuing to leave equities on the wayside.
New leads were also far and in-between and that left stocks to drift further. Among heavyweights, glove maker stocks were the day’s big losers while plantation stocks also succumbed to mild profit taking following their recent gains.
The broader market was also mixed-to-lower with losers still ahead of gaining stocks for the day with total volumes remaining insipid.
The near-term market outlook is likely to stay indifferent ahead of the tabling of Budget 2022 on Friday.
While most market participants will be looking for fresh catalysts from Budget 2022, they could continue to stay on the sidelines for the time being.
Until then, the market will continue to drift with mild bouts of profit taking from earlier gains which could still sustain the downside bias as there are still few immediate leads for market players to follow.
However, with the selling pressure still light, there should be ample support to ensure that the key index stays above the 1,580 level for the time being.
Below that level, the next support remains at 1,575 points while the hurdles are at 1,590 points and the psychological 1,600 level respectively.
Malacca Securities Research
The FBM KLCI witnessed another round of profit taking activities ahead of Friday’s Budget 2022.
While investors took a further step back from glove counters, we believe market focus will be on potential beneficiaries of the Budget 2022.
We also observed that buying interest in the building material segment could continue as it is the proxy to construction sector.
Crude palm oil (CPO) price has surpassed the RM5,000 mark again while crude oil prices climbed above the US$86/barrel mark on the back of supply-induced uncertainties.
The FBM KLCI continued drifting lower after breaching its daily EMA 9 level yesterday. Technical indicators were mixed as the MACD Histogram has dipped below zero, but RSI is above the 50 level.
Investors could keep their eye on the immediate support level at 1,580 while the resistance is located at 1,600-1,620. – Oct 27, 2021
