BELOW are excerpts of viewpoints from two selected research houses on what investors can expect in the day ahead:
Malacca Securities Research
Despite regional peers ending mixed, the FBM KLCI rebounded and booked modest gains on the back of bargain hunting activities.
We believe the market sentiment should be recovering further with the Finance Minister stating that the hospitalisation rate will be used as a metric to ease curbs for states once they enter the second phase of the national recovery plan (NRP) instead of daily confirmed cases; that may boost a little on the recovery theme in the near term.
Commodities-wise, crude oil rebounded and hovers above US$70, while crude palm oil (CPO) price retreated after a two-day rebound.
The FBM KLCI registered marginal gains amid bargain hunting activities, but still hovering below the 1,500 level.
Technical indicators turned slightly positive with the MACD Histogram turning green, while the RSI is recovering above 30.
Bargain hunting activities might push the key index towards the 1,500 level with the next resistance set at 1,520. Meanwhile, support level is located around 1,480.
Hong Leong Investment Bank Research
Despite recording another new high of 20,596 in local COVID-19 cases, the FBM KLCI staged a 4.5-point rebound, led by bargain hunting on recently bashed down plantation, telco and banking stocks following the Prime Minister’s statement that he still commands majority support and will prove so by facing a motion of confidence vote in Parliament in September.
Market breadth was positive with 517 gainers against 435 losers (the gainer/loser ratio rose to 1.19 after going below one in the last eight sessions).
In terms of fund flows, foreign and institutional investors were the major net sellers amounting to RM2 mil and RM37 mil (net sellers over the past 10 days) respectively while retail investors were net buyers of shares totalling RM39 mil. – Aug 6, 2021
