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 ended last week with slight gains, buoyed by a rebound of glove maker stocks and selected banking heavyweights.
The lower liners and broader market shares also managed to end the day with modest gains on mild bargain hunting activities.
Nevertheless, market interest was mostly lacklustre due to lack of leads that also saw market breadth staying mixed for the most part.
Even though Malaysian equities managed to end last week on a positive note, we are of the view that the broad market conditions are still insipid, affected by the ongoing COVID-19 lockdown that is also providing very few leads.
Consequently, we think the market will continue to drift for the time being, particularly as investor interest is still thin as many players are awaiting for a more definitive direction.
The lack of market participation could further leave sentiments to wane and the broadly downside bias intact, in our view.
Nevertheless, we think the mild bargain hunting activities may continue for the time being that could help the key index to hold steady over the near term with the key index attempting to linger around the 1,600 level.
There is support at the 1,580-1,590 levels, while the hurdles are still at the 1,510-1,515 levels.
Malacca Securities Research
Tracking a mixed performance on Wall Street last Friday, we think the mild rebound on the FBM KLCI last Friday could further fizzle off today and market sentiment is expected to be cautious ahead of the first US Federal Reserve meeting under the Biden’s administration as well as the holiday-shortened week.
As we are heading into the reporting season, investors may turn to selected sectors with high earnings certainty while the COVID-19 cases continued to rise.
The FBM KLCI snapped a six-day losing streak and closed mildly higher last Friday, but still hovering below the EMA 60 level. The key index is expected to move sideways below 1,620 amid investors’ mixed sentiment.
Meanwhile, indicators turned mixed as the MACD Histogram has turned into a green bar, while the RSI remains below 50.
Support is pegged at 1,590 followed by 1,570. The resistance is envisaged around 1,620-1,640. – Jan 25, 2021
