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 made a small bounce to break its downward spell and to end last week on a positive note.
There was mild bargain hunting on some of the index heavyweights, but conditions elsewhere remained mixed-to-lower with many of the lower liners and broader market shares still enduring selling pressure as losing stocks are still well ahead of gaining ones.
As a result, many of the broader market and lower liner indices stayed in the red at the end of last week.
Although the key index managed to post a rebound last Friday, the broad market conditions remain insipid as the cautious undertone is still holding with the extension of the country’s lockdown conditions.
This is likely to leave the market in a limbo for longer as corporate earnings recovery is becoming increasingly uncertain due to the prolonged lockdown and uneasing pandemic conditions.
Furthermore, there are also fewer noteworthy leads and the lack of catalysts is likely to leave market condition trapped in a feeble phase for longer.
For now, however, the key index will attempt to hover around the 1,560-1,565 levels on selected support on the heavyweights in what is seen as mild window dressing, but with the downside pressure still prevalent, the supports at 1,555 and 1,550 remain in play.
On the other hand, the other hurdles are at 1,570 and 1,575 respectively.
Malacca Securities Research
The FBM KLCI moved a tad high alongside the uptrend move in the regional markets on the back of bargain hunting after the key index closing at the year’s low in its previous session.
The lower liners and broader market which were traded in a negative bias tone suggests that investors are still cautious.
The local bourse may see another round of pullback following the extension of the movement control order (MCO 3.0) as COVID-19 cases remained above the 4,000-mark.
Meanwhile, investors may look ahead to the announcement of assistance schemes from the Government as well as the OPEC meeting scheduled for July 1.
The FBM KLCI staged a mild rebound with some improvement in volume after hitting the lowest point in 2021 in the previous session.
Technical indicators remained negative as the MACD Histogram has extended a red bar, while the RSI hovered below the 50 level.
With that, the key index may continue to trade between its support level at 1,550 and its resistance level at 1,580. – June 28, 2021
