BELOW are excerpts of viewpoints from two selected research houses on what investors can expect in the day ahead:
Inter-Pacific Research
Stocks on Bursa Malaysia closed with minute gains as directionless trading were the order of the day in the absence of new leads.
Even so, most Bursa indices closed in the red with the Consumer Products & Services Index shedding the most.
As a result, losers were still ahead of gainers for the day albeit by a narrow margin with lower liners and broader market shares becoming mixed. Traded volumes were some 15% more than a day earlier.
Market conditions are likely to remain largely indifferent as market players await for Friday’s release of Malaysia’s 2Q 2022 GDP (gross domestic product) data.
The ongoing results reporting season will also be providing some leads for market players with regard to the near-term performance for their stocks. As such, there will also be continuing cautiousness that could keep many market players on the sidelines for now.
However, we also think that the key index’s base building may continue as it looks to fortify its position within the 1,490 and 1,510 level for the time being. Apart from these levels, the other support and resistance levels are at 1,480 and 1,520 points respectively.
Malacca Securities Research
The FBM KLCI booked marginal gains amid lacklustre trading as cautious undertone remained in place ahead of the US inflation data that will be released later tonight (Aug 10).
With the Wall Street overnight ended negative, we opine that investors may stay on the sidelines for the session.
Upside potential might be capped by elevating global risks such as China-Taiwan tension and heightened inflationary pressures environment.
However, traders are likely to position themselves selectively ahead of the August reporting month as foreign buying remains positive over the past few days.
Commodities-wise, Brent crude oil price hovered around US$96/barrel while crude palm oil (CPO) price traded above RM4,150/metric tonne.
The FBM KLCI eked out small gains but remained below the key 1,500 level. Technical indicators are generally weaker as the MACD Histogram approaches zero while the RSI is hooking downwards around 60.
Resistance is set along 1,530-1,550 while support is located at 1,480 followed by 1,460. – Aug 10, 2022
