BELOW are excerpts of viewpoints from two selected research houses on what investors can expect in the day ahead:
Inter-Pacific Research
There was no follow-through buying with Malaysian equities pulling back on quick profit taking in tandem with the weakness in regional markets that was spooked by China’s increasing regulatory changes and fewer domestic leads.
As a result, most key index equities were in the red, giving back some of recent gains that also spread to many of the lower liners and broader market shares.
The insipid market environment has also resulted in market volumes tapering once again.
We still see the key index on a base-building trend as it is still hovering near the psychological 1,500 points level.
The indifferent trend, however, could also prevail for longer ahead of the release of the country’s 2Q 2021 gross domestic product (GDP) data that points to an improved year-on-year performance, but quarter-on-quarter performance is likely to remain subdued due to lockdown conditions that pervaded for most of the quarter.
Furthermore, conditions could stay cautious due to the still high COVID-19 cases and the ongoing political impasse that is keeping investor sentiments dampened.
With the key index set to hover around the 1,500 level, the supports remain at 1,490 and 1,480 points, while the resistances are at 1,510 and 1,520 points respectively.
Malacca Securities Research
The FBM KLCI retreated on the back of rising COVID-19 cases and recent political developments.
Meanwhile, investors are eyeing the 2Q 2021 GDP data which will be released today.
Commodities-wise, both the crude palm oil (CPO) and crude oil prices saw a decline. However, metal commodities rose amid booming demand on the global front, coupled with fresh logistics disruptions in China due to the partial shutdown of the world’s third-busiest container port due to COVID-19 infection.
The FBM KLCI drifted lower but managed to hold above the key 1,500 level by closing above the daily EMA 9 level. Technical indicators remained mixed as the MACD Histogram has extended a green bar, while the RSI hovered below the 50 level.
Investors may continue to monitor the 1,500 level with the next resistance envisaged at 1,520, while the support is set around 1,480-1,500. – Aug 13, 2021
