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 staged a firm rebound yesterday as it found support around the 1,520 level which enabled it to end its losing streak.
The rebound was underpinned by renewed interest and bargain hunting in plantation entities and oil & gas (O&G)-related stocks in tandem with gains in palm oil and energy prices.
The advances also permeated to many of the lower liners and broader market shares albeit market breadth remained negative with traded volumes little changed from a day earlier.
We think that Malaysian equities could attempt to build upon the gains it attained yesterday although the market’s undertone has not been lifted significantly.
The current rebound is very much driven by bargain hunting on selected commodity-related stocks, while the broader market conditions continue to stay largely insipid due to the lack of new catalysts.
Nevertheless, the FBM KLCI looks set to solidify its gains with further near-term upsides in the offing as market players take advantage of the slightly improved market sentiments to bargain hunt some of the recent losers.
The key index could now make a pass at the 1,533 level before testing the 1,540 level. The supports, meanwhile, are at 1,520 and 1,514 points respectively.
Malacca Securities Research
The FBM KLCI snapped three-session losing streak to close in the positive territory, underpinned by bargain hunting activities in selected heavyweights.
Tracking the rebound on Wall Street, the key index may continue to trade higher over the near term.
Also, the reopening of economic activities should support the market sentiment and the recovery narrative at least for now.
Commodities-wise, crude oil price stood above US$82 per barrel mark, while crude palm oil (CPO) price advanced by closing above RM4,700.
Meanwhile, the Baltic Exchange Dry Index saw gains for the third straight session, rising to above 5,400.
The FBM KLCI rebounded to close at intraday high but is still hovering below the daily EMA9 level. Technical indicators were mixed as the MACD Histogram has turned into a green bar, while the RSI continued hovering below the 50 level.
Resistance is envisaged along 1,550-1,560 while the support is located at 1,515. – Oct 6, 2021
