OSK Research said, while most of us are highly biased towards the fundamental approach in assessing the market, the prevailing developments may discourage such analysis for the time being.
In this regard, we are making a brief diversion and attempt to look at things from the quantitative and technical perspective. Although our findings may not be etched in stone, nonetheless it at least enables us to gauge the market’s direction and the level at which the window of opportunity opens for investors to accumulate on weakness.
What our models say. Not good, to say the least. The current political developments plus yesterday’s trading glitch certainly do not bode well for the stock market. From the quants perspective, our analysis reveals that the KLCI’s propensity to decline is much higher than that rising.
Technically, 1,090 pts seems to be the immediate support, with a more solid 1,050 to hold the market.