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 on a strong note following extended buying momentum in selected heavyweights like banking blue-chips, albeit the broader market were mostly negative as investors booked profits amid rotational plays into large caps.
We maintain our view that the key index looks quite lofty at the current juncture following the rush into cyclical stocks in anticipation of a faster-than-expected economic recovery amid the COVID-19 vaccine rollouts.
In the near-term, there could be a pullback to 1,677 points as investors digest recent gains, while the next resistance level is around 1,690 points.
The lower liners and the broader market, meanwhile remain sideways, following the lack of fresh catalysts.
We expect this to continue in the near-term as vaccine roll-outs boost buying-interest in heavyweights.
Malacca Securities Research
Despite sentiment on the Wall Street trended mixed last week, we believe trading interest on the local front will remain robust, riding on the recovery theme as well as the ongoing window dressing period.
Also, the positive vaccine development such as the emergency roll-out of COVID-19 vaccine in the UK, US and Canada in the near term may point towards the optimism on economic recovery moving forward.
With the anticipated recovery in business activities, we expect Brent oil and crude palm oil prices to remain firm within US$45-US$50 and RM3,200-RM3,400 respectively over the near term.
The FBM KLCI trended higher for the week given the positive move on banking-related and recovery-themed stocks. Given the key index is overbought, it may take a breather around the resistance along 1,700. Meanwhile, the FBM KLCI’s support is envisaged around 1,640 followed by 1,620. – Dec 14, 2020
