BELOW are excerpts of viewpoints from two selected research houses on what investors can expect in the day ahead:
Inter-Pacific Research
The key index managed to eke out minor gains at the end of the day, helped by late bargain hunting actions on selective oil and gas (O&G) heavyweights.
Elsewhere, conditions were also mostly positive with the lower liners and broader market shares seeing increased following, particularly among technology-related stocks.
The increased following also saw traded volumes pick up for the day, complementing the positive market breadth.
We continue to think that the FBM KLCI is likely to linger within the 1,580 and 1,600 points level over the near term as it attempts to find stability and to build up a base following the past month’s consolidation.
Domestically, there are still few noteworthy leads given that the movement control order (MCO 2.0) conditions are still prevalent, slowing down the economic recovery prospects.
Therefore, overseas leads are likely to be the main impetuses for now and with Wall Street and many global indices continuing to chalk new highs, the positivity should also permeate to the domestic market.
However, with overall market participation still low-to-moderate, we think that significant gains will be hard to come by and this will leave the key index within the above ranges for now.
Apart from the above support and resistance, the others are at 1,575 and 1,610 points respectively.
Malacca Securities Research
Mirroring the gains on Wall Street, the FBM KLCI edged mildly higher after Prime Minister Tan Sri Muhyiddin Yassin’s update on the scheduled roll-out of COVID-19 vaccination programme by the end-February 2021.
The announcement coupled with the positive performance on Wall Street overnight may lift the overall market sentiment on the local front.
Meanwhile, the lower liners will continue to enjoy their upward momentum as liquidity remains well on the equities market.
The FBM KLCI finished higher but still hovering below the EMA20 level. However, technical indicators are showing positive signs as the MACD Histogram extended another green bar, while the RSI has slipped into oversold territory.
Resistance will be set around 1,600-1,610 and the support is pegged around 1,560, followed by 1,550. – Feb 5, 2021
