BELOW are excerpts of viewpoints from two selected research houses on what investors can expect in the day ahead:
Inter-Pacific Research
The FBM KLCI lost further ground at the start of the week with the key index slipping below the psychological 1,500 level as the market was spooked by fresh concerns that the US Federal Reserve will continue lifting interest rates.
The selling was also in tune with the region’s weakness with most Bursa Malaysia indices ended the day in the red as technology stocks emerged as big losers.
This also saw many lower liners enduring steep losses and total losers overwhelming gainers by a wide margin.
With the key index failing to hold on to the 1,500 level, market conditions are becoming more precarious as the buying support is showing signs of waning following the breach of successive technical support levels of late.
This could hasten profit taking activities as market conditions are becoming more uncertain amid the increasingly guarded undertone.
Back home, there are still few noteworthy developments to entice market players to increase their participation, while the unsettled interest rate direction in overseas markets could leave market players cautious again.
Under the prevailing conditions, the downside bias looks to continue over the near-term with the immediate support of 1,480 under threat. Below that, the other support is at 1,473 points while the resistances are at 1,490 and 1,495 points respectively.
Malacca Securities Research
Global uncertainties arising from fears over additional interest rate hikes from the US Fed have sent the FBM KLCI below the 1,500 zone.
Global sentiment should remain negative as investors braced for the US Fed chairman’s speech in the Jackson Hole meeting which could signal further aggressive stance in taming the inflation.
Nevertheless, we expect buying interest to emerge on stocks with solid results amid the ongoing reporting season on the local bourse.
Commodities-wise, Brent crude continued to trade around US$96/barrel amid potential of more Iranian barrels entering the market while crude palm oil (CPO) traded above RM4,150/metric tonne.
The FBM KLCI tumbled below the key 1,500 level and its daily EMA60 level. Technical indicators turned negative as the MACD Histogram turned into a negative bar while the RSI slipped below 50.
The support is pegged around 1,460-1,480 while resistance is located along 1,500-1,530. – Aug 23, 2022
