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 weakness among Malaysian equities after the key index surrendered its intraday gains to remain on the downtrend for a third successive day last Thursday (Sept 15).
For the most part, the market was devoid of a direction that resulted in little follow through buying interest.
Conditions elsewhere were also mostly indifferent as the broader market shares saw little movements with gainers still behind losing stocks for the day with foreign funds being the day’s net sellers.
Market conditions are likely to remain mostly indifferent at the start of the week as Bursa Malaysia’s undertone is still one of cautiousness with few noteworthy leads to encourage more players back into the market.
Concerns are still abound over the interest rate direction and its impact on the global economy. This is likely to sustain the selling pressure that is still taking hold of the market although the steep selling is likely to have eased, thus reducing the selling pressure.
As such, the FBM KLCI could attempt to find some support around the 1,465 level which is also its lowest level in a month.
If this level is breached, the ensuing supports are at 1460 and 1,450 points respectively. The resistances, meanwhile, are at the 1,470 and 1,480 levels respectively.
Malacca Securities Research
The FBM KLCI slipped into the negative territory at the closing bell on Thursday (Sept 15) as sentiment remained fragile prior to the Malaysia Day holiday weekend.
All eyes should be on the US Federal Reserve’s September meeting and Malaysia’s inflation rate this week. Hence, the local bourse may continue to see sideways trading tone along with its regional peers as investors prepare for further interest rate hikes by the US Fed.
Commodities-wise, crude oil price was above the US$91/barrel mark while crude palm oil (CPO) is hovering below RM3,900/metric tonne.
The FBM KLCI declined for the third straight session. Technical indicators remained negative as the MACD Histogram extended a negative bar while the RSI hovered below the 50 level.
The next support is set at 1,465, followed by 1,430 while the resistance is pegged along 1,500-1,530. – Sept 19, 2022
