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 remains south-bound albeit it managed to recoup most of its intraday losses to end the day little changed near the 1,590 level.
For the most part, market sentiments were weak in the absence of fresh leads and the moribund regional markets.
However, selling was more pronounced among the broader market shares which saw total losers overwhelming gainers by a wide margin of 3-to-1 due to widespread profit taking activities.
There is no change to our immediate stock market view where we continue to think that conditions are still unsettled that will keep the downside pressure intact for now despite the already oversold technical indicators that suggest a rebound is already due.
Fresh leads are still few and in-between which could prompt more profit taking actions as market players may opt to lock-in some of the gains from the FBM KLCI’s rally since the start of the year.
Although the recent consolidation phase has provided some bargains, fresh buying interest is still elusive due to the increasingly cautious market undertone.
For now, the key index may attempt to arrest its falls to find support around the 1,590 level but if it is unable to do so, the supports are at the 1,583 and 1,580 levels. The resistances, meanwhile, are at 1,595 points and 1,600 points respectively.
Malacca Securities Research
Profit taking activities were seen across the Bursa exchange but we noticed that the FBM KLCI is hovering around its key support level.
Meanwhile, US stock markets ended on a mixed note while awaiting several key corporate earnings like Micron, Nike and Fedex with traders are on the look-out for the US GDP (June 27) and PCE (June 28) data this week.
Both data may provide clues to the US Federal Reserve’s interest rate direction. Currently, market participants are still expecting about two rate cuts this year.
On the commodity markets, Brent crude has rebounded above US$85/barrel while gold price is ranging around US$2,330/oz. Although CPO (crude palm oil) price closed below RM3,900/metric tonne, it is still hovering above the key support of RM3,850/MT.
The FBM KLCI index ended lower by dipping below the 1,590 level. The technical readings on the key index were negative with the MACD Histogram forming another negative bar while the RSI dropped below 50.
The resistance is envisaged around 1,605-1,610 while the support is set at 1,570-1,575. – June 25, 2024
