BELOW are excerpts of viewpoints from two selected research houses on what investors can expect in the day ahead:
Inter-Pacific Research
The selling on Bursa Malaysia remained unabated yesterday as the FBM KLCI index continued to slide amid the lack of catalysts that left it to drift further down to its year low.
The weak performance of regional indices also contributed to the key index’s sell-down which has now extended to six successive sessions.
The broader market and lower liners also saw further weakness which resulted in the day’s losing stocks overwhelming gainers nearly on a 2-to-1 ratio.
The near-term outlook is likely to stay insipid as there are still few noteworthy leads for market players to follow.
At the same time, the steep pull-back in key global indices overnight will also leave sentiments to stay frayed for longer.
There are still substantive concerns over the rising global inflationary pressure, and this could keep Bursa Malaysia directionless with stocks drifting lower for longer.
Collectively, this is likely to see the FBM KLCI ending the week on a sombre mode. With the 1,520-level breached and the key index already at its year-low, the next support is now lowered to the 1,500-1,503 levels.
If these levels are also breached, the ensuing support is at 1,492 points. The immediate hurdle is at 1,512 points followed by the 1,520 level.
Malacca Securities Research
The FBM KLCI slumped for the sixth straight session amid regional weakness, marking its longest losing streak since January 2022.
Despite the stronger retail sales recorded in April 2022 coupled with the improved unemployment rate which dipped below 4.0%, investors may stay cautious given the heavy selling pressure on Wall Street and European stock exchanges as the European Central Vabk (ECB) raised its interest rate by 50 basis points (bps), translating to further volatility on local exchange over the near term.
On the commodity markets, Brent crude price remained firm above the US$120/barrel mark, while crude palm oil (CPO) price fell, hovering around RM6,250/metric tonne after Indonesia launched an export acceleration scheme.
The FBM KLCI plunged without any significant buying support. Technical indicators remained negative with the Histogram extended another negative bar while the RSI is below 50.
Should the weakness persist, next support is set at 1,500, followed by 1,450 while the resistance is pegged around 1,530-1,550. – June 10, 2022
