BELOW are excerpts of viewpoints from two selected research houses on what investors can expect in the day ahead:
Inter-Pacific Research
There was quick profit taking yesterday following the window dressing activities a day earlier in conjunction with the MSCI realignment exercise.
The renewed selling left the key index tethering at the 1,550 level again as market conditions turned fleeting again.
At the same time, traded volumes returned to the low-to-moderate range as interest on the lower liners and broader market shares remained largely indifferent.
The near-term outlook will still be uncertain, hampered by the lack of catalysts and continuing worries over the state of the domestic and global economies that shows few signs of abating as yet.
At the same time, the results reporting season has ended with little fanfare due to the spate of mixed results.
With fewer noteworthy leads, the fresh buying also set to remain insipid and the key index is set to drift further over the near term.
This is likely to leave the 1,550- support level under threat again from further selling pressure.
If this level fails to hold, the support will return to the 1,540-1,545 levels. On the upside, the resistances are at the 1,560-1,563 levels followed by the 1,570 level.
Malacca Securities Research
On the first day of June, the FBM KLCI surrendered big gains from the previous session as global inflationary pressure remains a concern which may derail the economic recovery.
Investors may trade cautiously following the overnight decline on Wall Street. Nevertheless, traders are likely to look out for selected technology stocks with solid balance sheet and growing quarterly results (at least positive quarter-on-quarter growth).
On the commodity markets, Brent crude oil was traded around US$116/barrel mark while crude palm oil (CPO) is trading above RM6,300/metric tonne.
The FBM KLCI reversed its gains and closed just around the 200-day moving average on the back. Technical indicators turned mixed as the MACD Histogram has extended a positive bar while the RSI dipped below the 50 level.
The next support level is located 1,530 followed by 1,500 while the resistance is set around 1,570-1,580. – June 2, 2022
