BELOW are excerpts of viewpoints from two selected research houses on what investors can expect in the day ahead:
Inter-Pacific Research
There is still little reprieve for key index stocks as they headed south again to end last week on a dour note, largely due to quick profit taking actions from the gains attained a day earlier.
There were also few leads for market players to follow, leaving the market to drift instead.
However, the lower liners and broader market shares continue to trend higher on light bargain hunting that also allowed market breadth to stay marginally on the positive side.
On the whole, the near-term market direction is still uncertain with the continuing political impasse and high COVID-19 cases to weigh on market sentiments for longer.
Overseas leads are also few and in-between with rising COVID-19 cases globally also dampening sentiments.
Consequently, the lacklustre market trend is set to prolong into the start of the week.
This also means that the downside bias also remains following the FBM KLCI’s inability to hold on to the psychological 1,500 points level, which is leaving the key index at the crossroads once again.
Amid the continuing market indifference, the supports are now at 1,486 and the 1,480 levels respectively. The hurdles, on the other hand, are at 1,495 and the 1,500 points respectively.
Malacca Securities Research
In line with the regional downtrend, the FBM KLCI finished the volatile week in a sour note amid selling in selected heavyweights on the key index.
Tracking the recovery in the US and the announcement from the Prime Minister over the weekend on standard operating procedure (SOP0 relaxations for fully vaccinated citizens will be positive for the market, especially on the recovery theme sectors.
Meanwhile, Malaysia’s 2Q 2021 gross domestic product (GDP) growth rate which will be released on the coming Friday may draw attention.
The FBM KLCI staged a pullback as the key index continued hovering below the daily EMA9 level. Technical indicators turned negative as the MACD Histogram has turned into a red bar, while the RSI hovered below the 50 level.
Investors may trade in a cautious mode with focus on the recovery theme sector. Resistance is envisaged around 1,500-1,520, while the support level is located at 1,450-1,480. – Aug 9, 2021
