BELOW are excerpts of viewpoints from two selected research houses on what investors can expect in the day ahead:
Inter-Pacific Research
The weakness continues with the FBM KLCI succumbing to a fresh bout of selling as market conditions remained insipid.
Lower liners and broader market shares also followed suit as most market players remained on the sidelines due to shortage of fresh leads and sentiments staying mostly cautious.
As a result, losing stocks continue to dominate and more-than-double the number of gainers.
At the same time, traded volumes were also lacklustre and little changed from the previous day.
The continuing lack of catalysts, coupled with lingering concerns over corporate earnings performances, will leave market sentiments on a low gear for longer.
This results in many market participants remaining guarded and prolonging their wait-and-see stance until there is clarity on the market’s direction.
The upcoming unveiling of the country’s 3Q 2021 gross domestic product (GDP) at the end of the week will be keenly followed as it could provide a gauge on the country’s economic prognosis going forward.
In the meantime, a guarded market condition could prevail, leaving the market to drift further.
The 1,520 level is the immediate support followed by the 1,515 level before the psychological support of 1,500 points comes into play. On the other hand, the 1,530 level will be the next hurdle followed by 1,535 points.
Malacca Securities Research
The FBM KLCI skidded on the back of further selling pressure amid mixed regional market performances despite the Malaysia’s Industrial Production Index (IPI) rose 2.5% year-on-year while employment readings improved.
The energy sector was the sole gainer on the broader market as crude oil price remained elevated, hovering above US$84/barrel at the time of writing.
While investors may remain on tenterhooks ahead of Melaka state election, we believe bashed-down counters could be sweet spot for bargain hunting activities especially counters with solid earnings prospects.
The FBM KLCI retreated after registering two-day winning streak amid lacklustre trading activities.
Technical indicators remained negative as the MACD Histogram has extended a negative bar, while the RSI hovered below the 50 level.
Investors could monitor the support level located at 1,500-1,520 while the resistance is envisaged along 1,550-1,560. – Nov 10, 2021
