BELOW are excerpts of viewpoints from two selected research houses on what investors can expect in the day ahead:
Inter-Pacific Research
Malaysian equities managed to rebound last Friday, recovering from the steep falls a day earlier when it was sent lower on a knee-jerk reaction to the new domestic political imbroglio.
The buying was broad-based with market breadth turning positive with many of the lower liners and broader market shares also regaining some ground.
Despite the return of bargain hunting activities, however, market participation was thinner as most market players elected to stay on the sidelines.
While Friday’s bounce was welcomed to break the streak of weakness, we continue to think that market conditions are largely cautious with the continuing political impasse and unrelenting COVID-19 cases affecting sentiments.
However, we think that the selling looks to have eased for the time being and this could allow for the market to pursue a new base even as we think that fresh buying will remain elusive amid the continuing dearth of positive leads to draw market players back into the market.
Therefore, we see the 1,520-level serving as the immediate base for a potential base building process with the near-term targets at 1,525 and 1,530 respectively. The supports are at 1,513 and the psychological 1,500 support level.
Malacca Securities Research
The FBM KLCI finished the week on a positive note as the key index rebounded from the previous five consecutive losses on the back of bargain hunting activities.
However, investors are likely to remain cautious due to dearth of fresh leads and concerns over the ongoing political developments as well as the high COVID-19 infection rates which may overshadow the improvements on vaccination rates.
Meanwhile, market may watch the Malaysia’s industrial production and retails sales data which will be released today.
Commodities-wise, both the crude palm oil (CPO0 and oil prices have seen a surge.
The FBM KLCI snapped the five-day losses to close the week higher, rebounding from the year-to-date low.
Technical indicators are looking slightly positive with the MACD Histogram turning green while the RSI crossed above 30. Resistance will be pegged around 1,525-1,548, while 1,500 could be a line of support to watch. – July 12, 2021
