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 continues to make up ground yesterday amid the easing market malaise that has engulfed it over the past month.
This allowed the key index to climb back to the 1,540 level with beaten down technology stocks being among the big movers.
Away for the key index, however, conditions were still mixed-to-lower with market breadth remaining negative due to the lack of interest on the lower liners and broader market shares.
As a result, the traded volume was still below the 3 billion shares mark for the day.
With the near-term outlook still mildly positive, the key index is likely to recover further, buoyed by continuing bouts of bargain hunting on some of the recent big losers.
The positive close on key overseas indices overnight will also provide some calming effect and allow for the FBM KLCI to regain more ground.
It also appears that the key index has found a bottom for the time being, and this could allow it to make an attempt at regaining the psychological 1,550 level.
Still, the near-term upsides may be measured as there is still tentativeness that may slow its ascend.
As such, the 1,550 level remains a formidable level to breach with an interim hurdle located at 1,545 points. The supports, meanwhile, are at 1,540 and 1,531 points respectively.
Malacca Securities Research
The FBM KLCI closed higher amid buying interest within telco and banking heavyweights.
Given the strong rebound and follow through interest on Wall Street, we expect the spill-over of buying support to emerge among technology stocks on the local front with traders focusing on the recent bashed down technology leaders given their earnings have stabilised in the recent reporting season.
However, we expect the upside to be limited given the unresolved Ukraine and Russia tension.
Nevertheless, we are optimistic on both the energy and plantation sectors with the elevated Brent crude price hovering above US$115/barrel while crude palm oil (CPO) is trading above RM6,500/metric tonne.
The FBM KLCI rebounded mildly but is still hovering below the SMA200. Technical indicators are still negative with the Histogram having extended a negative bar while the RSI is still hovering below 50.
Support is pegged around 1,500-1,530 while the resistance is located at 1,570-1,580. – May 27, 2022
