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 on the ascend, buoyed by sustained foreign interest on index heavyweights that lifted it close to the 1,570 level.
Much of the gains came in the late afternoon buying, sending the key index to its two-month high.
Elsewhere, conditions turned mixed with profit taking setting in on many lower liners that left market breadth mixed. However, there was no improvement in the day’s traded volume.
After successive days of upsides that saw the key index gaining some 50 points, the market’s condition is becoming toppish and overdone which may prompt profit taking activities.
Although the recent gains were welcomed to break the key index’s downward spell amid the calmer political environment, corporate fundamentals are still at a low gear due to the ongoing pandemic conditions with high infection rates and the need to retain many restricted movements which will ultimately dampen prospects for a quicker economic recovery.
As such, the measure of cautiousness remains; this may restrain the market’s upward momentum for the time being.
We see an easier market condition ahead with the supports pegged at 1,565 and 1,555 points respectively. The immediate hurdle is at 1,570 points followed by the 1,575 level.
Malacca Securities Research
The FBM KLCI posted another day of gains, supported by foreign buying which saw highest daily net buying of RM236.5 mil since mid-June amid a calmer political environment.
While the key index continues to building on its rebound momentum, note that potential profit taking activities may emerge following recent strong surge.
Internationally, investors are waiting for the outcome of the US Fed annual Economic Policy Symposium to gauge the monetary policy outlook which may affect market sentiment.
Commodities-wise, both the crude palm oil (CPO) and crude oil prices climbed significantly overnight.
The FBM KLCI climbed for the fourth session as the key index closed above the SMA 100 level. Technical indicators remained positive as the MACD Histogram has extended a green bar, while the RSI has crossed above the 70 (overbought).
With the key index crossing above the resistance level at 1,565, the next resistance is at 1,580 while the support level is located at 1,540. – Aug 26, 2021
