BELOW are excerpts of viewpoints from two selected research houses on what investors can expect in the day ahead:
Inter-Pacific Research
Malaysian stocks ended Friday on a firmer note with mild bargain hunting emerging to help stocks halt their streak of losses.
Most Bursa Malaysia indices ended the week on a positive note with telecommunication stocks making the biggest moves. Many lower liners and broader market shares also chalked up gains to help boost market breadth.
However, traded volumes continue to stay benign to rank among the lowest for the year.
Despite the market’s recent rebound, the near-term outlook remains unsettled, hampered by the few available positive leads to help restore confidence.
As a result, the market’s direction is still uncertain with market players likely opting to stay on the sidelines for the time being, preferring to wait for a more decisive direction to emerge.
This also means that the market may continue to drift lower for now but would also be looking to find some measure of support around the 1,420 level to break its downtrend that started in May.
If the above level fails to hold, the supports are lowered to the 1,414-1,418 levels before the psychological 1,400 levels comes into play. On the other hand, the resistances are at 1,428-1,431 points followed by the 1,440 level.
Malacca Securities Research
The FBM KLCI rebounded on Friday following the back-to-back losing sessions, led by selected banking and industrial products heavyweights and with rising regional markets adding to the positive sentiment.
Nevertheless, we deem the rebound may be short-lived amid a rebound in COVID-19 cases in Malaysia, a re-introduction of lockdowns in China as well profit taking activities on Wall Street overnight.
On the commodity front, Brent crude price hovered around US$107/barrel mark while crude palm oil (CPO) price moderated further to RM4,150/metric tonne.
The FBM KLCI bounced off its 52-week low ahead of the long weekend. Technical indicators, however, turned bearish as the MACD Histogram bar fell below the zero line while the RSI hovered below 50.
Resistance is located at 1,460-1,480 while support is pegged around 1,400-1,420. – July 12, 2022
