BELOW are excerpts of viewpoints from two selected research houses on what investors can expect in the day ahead:
Inter-Pacific Research
There were more profit taking yesterday as sentiments were spooked by fresh geopolitical tensions between China and Taiwan.
At the same time, there were also few domestic impetuses for the key index stocks to resume their upsides.
However, the FBM KLCI managed to find mild support to help it end the 1,490 level. The broader market was mixed as losers and gainers were almost at parity but market interest slumped as the total volumes fell below the 2 billion shares mark.
After finding support at the 1,490 level yesterday, the key index could be angling for a rebound in the near term in tandem with a recovery of global equities overnight that was boosted by a spate of better-than-expected corporate earnings and slight easing of recession fears.
At the same time the tension between China and Taiwan has not escalated and this could help to repair some of the frayed market sentiments.
The recovery could see the key index taking another stab at the 1,500 level as market players capitalise on the more positive market undertone to trade on some of the recent losers.
In the interim, there is a hurdle around the 1,495 level while the supports at located at the 1,480 and 1,473 levels.
Malacca Securities Research
The FBM KLCI took another dive amid continuous profit-taking activities as investors digested strong gains from the previous four sessions.
Given the market treated Nancy Pelosi’s visit to Taiwan as non-event, we believe the sentiment will recover along with the regional peers following sharp gains in the US triggered by robust economic data and stronger corporate earnings.
Commodities-wise, Brent crude oil price continued to fall below the US$100/barrel mark while crude palm oil (CPO) price dropped to trade around RM3,800/metric tonne.
The FBM KLCI extended losses for the second successive session as the key index pulled back further from the 1,500 psychological level.
Technical indicators, however, remained positive as the MACD Histogram extended a positive bar while the RSI hovered above 50. Resistance is pegged along 1,500-1,530 while the support is set at 1,450-1,460. – Aug 4, 2022
