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’s rebound sustained to the end of last week albeit it ended the session well below its intraday high of 1,604 points on profit taking activities.
As it is, market sentiments continue to improve after the early week sell-off due to easing recession fears that enabled most stocks also end the week on a firmer note with total gainers overwhelming losers on a hefty 5-to-1 ratio.
The comeback saw the FBM ACE and FBM Small Cap indices also making strong headway to end the week on a firm note.
Near-term sentiments are likely to remain positive as the market attempts to build upon the gains it attained following the steep falls a week ago.
Conditions have become firmer as the market continues to cast aside concerns over the spate of weaker US economic data that led to the sell-down.
The positivity among key global indices, coupled with the spate of still upbeat economic data on the Malaysian economy, could further allow the key index to sustain its recovery process.
However, with the 1,600 level still a formidable level to clear, further upsides may still be measured at the start of the week.
Beyond the 1,600 resistance, the other hurdles are at 1,605 and 1,610 points respectively. There are supports at the 1,590-1,593 levels, followed by 1,585 points.
Malacca Securities Research
The local market gained momentum throughout last week following a significant sell-off on Monday (Aug 5) as bargain-hunting activities emerged to form a strong hammer pattern on the weekly chart.
Similarly, traders in the US markets, too, scooped up shares after experiencing the “Black Monday” sell-off to completely reversing the overall market downturn.
We believe buying interest has returned but traders will monitor upcoming important economic data, including (i) PPI (Producer Price Index); (ii) CPI (Consumer Price Index); (iii) retail sales; and (iv) the manufacturing index before committing further to the relief rebound.
In the commodity markets, Brent crude traded near US$80/barrel amid the on-going geopolitical tension in the Middle East while gold prices gained momentum, trading above US$2,420/oz. Elsewhere, crude palm oil (CPO) price is in the downtrend phase which is below RM3,800/metric tonne.
The FBM KLCI index ended higher towards 1,596 level. However, the technical readings on the key index were negative with the MACD histogram forming another negative bar and the RSI maintains below 50.
The resistance is envisaged around 1,611-1,616 while the support is set at 1,576-1,581. – Aug 12, 2024
