BELOW are excerpts of viewpoints from two selected research houses on what investors can expect in the day ahead:
Inter-Pacific Research
Malaysian equities retreated further as foreign funds took profit on their recent gains to send the key index lower.
The increased selling was also due in part to the upcoming 15th General Election (GE15) that is still too close to call.
As a result, all Bursa sector indices fell with healthcare stocks retreating the most and market breadth turning negative amid the mixed broader market conditions. At the same time, traded volumes also saw further pullback due to increasing market cautiousness
With market conditions becoming more cautious, we see the tentativeness increasing ahead of the election weekend with the FBM KLCI becoming more mixed-to-lower as market players are likely to retreat to the sidelines until the outcome of GE15 is determined.
The unsettled market conditions could also see Malaysian equities bucking the positivity in global indices that are buoyed by the lower inflation threat.
As it is, the key index is at the crossroads after it found support at the psychological 1,450 level yesterday. If this level fails to hold, the key index could dip further to the next supports at 1,440 and 1,434 points respectively.
On the upside, meanwhile, the resistances are at 1,454 and 1,460 points respectively.
Malacca Securities Research
The FBM KLCI ended lower, underperforming the regional bourses as jittery sentiment prevailed ahead of GE15 and with foreign investors having turned net seller for the session.
We believe the optimism from Wall Street overnight – sparked by a cooler-than-expected October Producer Price Index in the US that signalled a cooler inflation environment – may spill over to the global stock markets.
Nevertheless, local investors may remain cautious towards the GE15. Commodities-wise, Brent crude price sustained above the US$93/barrel mark while crude palm oil (CPO) price hovered above RM4,050/metric tonne.
The FBM KLCI sank further, closing just above its daily EMA9 level. Market breadth, however, remained positive as the MACD Histogram extended a positive bar while the RSI hovered above 50.
Resistance is envisaged along 1,480-1,500 with support set at 1,420-1,430. – Nov 16, 2022
