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 lost ground yesterday amid the continuing market indifference where leads were still far-and in-between.
Plantation stocks emerged as the day’s big losers but healthcare stocks were the day’s big winners.
On the whole, however, selling activities continue to dominate as many lower liners and broader market stocks lost ground with total declining stocks nearly twice the number of gainers.
Traded volumes also stayed below the 3 billion mark albeit it was 10% more than a day earlier.
With domestic leads still in short supply, the FBM KLCI’s near-term market condition is likely to remain directionless with fresh buying staying thin.
This is likely to prolong the mostly sideway trend with the key index still trapped within a tight range of between the 1,520 and 1,530 points for the time being.
Buying interest may also stay low with many market players adopting a wait-and-see stance ahead of the lift in equity transaction stamp duty starting next year.
In addition, the ongoing results reporting season is providing few noteworthy leads and this could further leave market conditions in a state of flux.
Apart from the above ranges, the other support and resistance levels remain at 1,515 and 1,540 points respectively.
Hong Leong Investment Bank Research
After hovering at 1,516-1,538 levels over the past two weeks, the FBM KLCI may continue its sideways pattern during the peak of reporting season.
Any residual strength from an oversold rebound is likely to face stiff barriers at 1,545-1,560 (Nov 1 gap) levels.
Clearing these hurdles successfully will lift the index towards 1,568-1,576-1,590 territory. On the flip side, crucial supports are pegged at 1,500-1,515 zones, supported by grossly oversold technical indicators. – Nov 24, 2021
