KUALA LUMPUR (Nov 17): Malaysian shares may take the cue from the Hong Kong-Shanghai stock link debut today and Japan's third quarter gross domestic product announcement.
Malaysian corporate financial result announcements during the current reporting season may also affect local investment sentiment.
The Hong Kong-Shanghai stock link is expected to spur foreign capital flow into Asian markets, hence, a potential positive impact on Malaysia's FBM KLCI.
Reuters reported that the expected fund inflow had helped push the SSE180 Index and SSE380 Index - the two main Chinese destinations for foreign investments through the scheme - up over 10% and 6.5% since late last month.
In Malaysia last Friday, the FBM KLCI fell 2.02 points or 0.11% to close at 1,813.79
Today, technical analysts said the KLCI may see further selling pressure. The forecast was based on historical technical indicators of the KLCI.
"However, the market settlement at 1,813.79 indicated high level of significance at the 1,812 support level. A fall below 1,812 on close basis should see the benchmark index moving down to the next support at 1,800.
"The analysis of overall market action on 14 Nov 2014 revealed that buying power was weaker than selling pressure. As such, FBM KLCI would likely trade below the 1,808.70 level on 17 Nov 2014," AllianceDBS Research Sdn Bhd said.