BELOW are excerpts of viewpoints from two selected research houses on what investors can expect in the day ahead:
Inter-Pacific Research
The key index lost further ground at the start of the week but remains above the 1,500 level as fresh buying interest remains thin following last Friday’s (Aug 12) release of the country’s 2Q 2022 gross domestic product (GDP).
Much of the weakness stemmed from glove stocks as they continue to be sold down due to their weaker prospects. In the broader market, conditions were also directionless and remained mixed with total losers staying ahead of gaining stocks.
Malaysian equities looks to be staying on a sideway trend as they continue on with their consolidation trend after having recovered 7% over the past month.
The recovery has largely reflected the country’s improving economic fundamentals with the key index now requiring further impetuses for it to break out of its range-bound trend.
In the interim, the key index could still be on its base building process and hover around a tight range for now.
It could linger within the 1,490 and 1,510 levels for the time being as it awaits for a new direction to emerge. Apart from the above levels, the interim support is at 1,495 points while the other resistance is at 1,520 points.
Malacca Securities Research
The FBM KLCI retreated amid worries over China’s economic slowdown which led to an unexpected lending rate cut.
While the market may trade in a positive-biased mode and looking forward to a brighter outlook in the ongoing earnings season, China’s economic slowdown may indicate risk and a spike in recession fears.
Commodities-wise, Brent crude price declined amid expectation on China’s lower demand outlook, trading around the US$95/barrel mark while crude palm oil (CPO) traded above RM4,200/metric tonne.
The FBM KLCI slid as buying momentum faded but the key index remained above its EMA9 level. Technical indicators remained mixed as the MACD Histogram extended a negative bar while the RSI hovered above 50.
Resistance is pegged around 1,530-1,560 while support is envisaged at 1,460-1,480. – Aug 16, 2022
