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 rebounded, climbing back above the 1,630 level and closing just shy of the 1,634 level.
During the session, the key index jumped to an intraday high of 1,638 points before settling at a new three-year high.
Market sentiments were buoyed by recent gains among key global indices and the increased buying from foreign funds.
Construction stocks were the sector leaders with other lower liners also mostly heading higher, cumulating in gainers outpacing losers by a wide margin again.
Market sentiments have turned firmer of late, riding on the heightened possibility that the US will trim its interest rates as soon as September.
In addition, domestic economic conditions are also ringing louder with more fresh investments on the horizon that could fortify the economic undertone for the remainder of the year albeit the GDP (gross domestic product) forecast are still seeing little or no change as yet.
Nevertheless, the 1,634-level could remain a major hurdle for the key index to clear over the near-term given a stronger push may be required for it to be penetrated.
If the major resistance holds, the key index may succumb to a bout of profit taking with the supports pegged at the 1,630 level, followed by the 1,625 level. Above 1,634 points, the hurdles are at 1,636 and 1,642 points respectively.
Malacca Securities Research
Overall, the FBM KLCI, FBM70 and FBM Small Cap have surged to 52-week highs again led by buying support within the local bourse led by telco and banking stocks as well as construction stocks.
Meanwhile, the US markets were mixed with the Dow rising to new highs above the 41,000 level but Nasdaq falling sharply as investors took profits from AI (artificial intelligence) stocks by rotating into selected small cap stocks on the broader market.
Also, traders will be eyeing the upcoming jobs data due later today.
On the commodity markets, Brent crude rebounded and stayed above the US$85/barrel after the US oil inventories fell amid rising summer demand while gold price continued to stay above the US$2,460/oz level. Elsewhere, CPO (crude palm oil) price traded above RM3,900/metric tonne.
The FBM KLCI index ended higher towards the 1,633 level. The technical readings on the key index were positive with the MACD histogram formed another positive histogram bar and the RSI continues to trend above 50.
The resistance is envisaged around 1,648-1,653 while the support is set at 1,613-1,618. – July 18, 2024
