BELOW are excerpts of viewpoints from two selected research houses on what investors can expect in the day ahead:
Inter-Pacific Research
The key index closed little changed yesterday after it managed to recoup most of its intraday losses at the end of yesterday’s trade.
Profit taking was widespread throughout the day which dented the market’s upsides but an end-of-day haul on glove makers allowed the FBM KLCI to narrow its losses.
Conditions elsewhere were also negative with lower liners and broader market shares ending in the red. As a result, market breadth was in the negative territory for the day.
Malaysian equities are seemingly reverting to a sideway trend as market players await for more leads to emerge from the ongoing results reporting season, casting aside the gains on Wall Street.
At the same time, market players are also awaiting for the country’s 3Q 2022 gross domestic product (GDP) to be announced on Friday (Nov 11) that could provide a gauge of the country’s economic conditions in the quarters ahead.
Under the prevailing condition, the key index looks to maintain its mostly sideway trend for now, hovering within the 1,440 and the psychological 1,450 levels as more market players adopt a wait-and-see stance.
In the interim, there is support at the 1,435 level while the immediate hurdle is at 1,447 level.
Malacca Securities Research
The FBM KLCI ended marginally lower as investors traded cautiously prior to the US mid-term elections but inflow of foreign funds continued for the third consecutive day.
With the Wall Street continuing its recent gains ahead of the inflation data, we believe the market is expecting the CPI (consumer price index) data to decline and the US Federal Reserve could pivot.
However, our view is that the CPI data will remain elevated at least for the rest of 2022. Given the concerns over China’s ongoing zero-COVID policy to weigh on the economy, we believe investors will position themselves using the earnings season as well as the 15th General Election (GE15) as the near-term catalysts.
Commodities-wise, the Brent crude price is hovering around US$95/barrel while crude palm oil (CPO) price is trading around RM4,400/metric tonne.
The FBM KLCI edged lower but managed to sustain above its daily EMA9 level. Technical indicators remained mixed as the MACD Histogram extended a negative bar while the RSI hovered above 50.
The resistance is pegged at 1,465-1,480 while support is located at 1,410-1,420. – Nov 9, 2022
