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 rebounded yesterday with decent upsides as selected index-linked stocks were chased up on mild bargain hunting actions, helping to reverse the dour trend that has engulfed the key index over the past few sessions.
Among the big movers for the day were gaming and banking stocks, but glove maker stocks continue to retreat.
Elsewhere, conditions remained mixed with the market breadth nearly equal while traded volumes were little changed from a day earlier.
Despite yesterday’s rebound, we are in the view that market conditions will remain mostly guarded over the near term as market players await for the release of the country’s gross domestic product (GDP) performance tomorrow (Feb 11).
The broad expectation is for economic conditions to deteriorate again in the final quarter of the year due to the prolonged lockdown conditions.
In addition, we see market activities remaining largely on the thin side ahead of the Lunar New Year break at the end of the week.
Consequently, we think that the key index’s upsides could again be limited as it looks to trend within the 1,580 and 1,600 levels for the time being.
The interim resistance is at 1,590 points, while the other support is at the 1,573 level.
Malacca Securities Research
Despite mixed trading tone on Wall Street overnight, the FBM KLCI tracked its regional peers to close higher yesterday.
We reckon the local bourse to remain upside bias view at the current juncture, lifted by buying interest in recovery-themed stocks and the energy sector – the latter could be focused on the back of firmer crude oil price.
In view of the number of COVID-19 cases dropping below 3,000 level yesterday, market should position itself into recovery themed stocks at least for this week.
The FBM KLCI snapped its two-day losing streak to close higher at its EMA120 level. As the key index failed to cross above its immediate resistance at 1,600, it may continue to stay in consolidation mode.
Support is pegged around 1,550-1,560. Meanwhile, indicators remained mixed as the MACD Histogram has extended another green bar while the RSI remained below 50. – Feb 10, 2021
