BELOW are excerpts of viewpoints from two selected research houses on what investors can expect in the day ahead:
Inter-Pacific Research
Rising uncertainties over the country’s political environment gave way to renewed selling yesterday resulting in the key index dipping once again to another new low since November last year.
The selling was also extensive with losers overwhelming gainers on a two-to-one ratio. Correspondingly, most of the lower liners and broader market shares also retreated as market volumes tapered on fewer market players.
We see little change to Bursa Malaysia’s near-term outlook and the unresolved political issues will continue to weigh on market sentiments, potentially leaving stocks to drift further with the downside pressure to also permeate further.
In addition, the unabating COVID-19 infections will also leave sentiments on the guarded side as hopes of a sooner-than-expected resumption for most economic activities to resume will still be on the backburner despite the increasing vaccination rate.
With the market devoid of catalysts, we foresee continued selling that could send the key index back below the 1,490 support.
Further below, the support is at the 1,480 level, while the hurdles remain at 1,500 and 1,510 points respectively.
Malacca Securities Research
The FBM KLCI reversed previous session’s gains to close in the negative territory as investors recoiled following the record high COVID-19 daily confirmed cases and the ongoing political noises in the country.
The local bourse witnessed outflow of foreign funds for nine continuous trading sessions on the back of the overall negative market stance.
Nevertheless, the Prime Minister’s announcement on the resumption of Parliament sitting next month as well as the increasing vaccination rate could reduce market uncertainties.
The FBM KLCI surrendered its gains in the previous session, falling below the critical 1,500 level.
Technical indicators remained negative as the MACD Histogram has turned into a red bar, while the RSI hovered below the 50 level.
As the 1,500 level gave ways, investors may watch for the next support level at 1,480, while the resistance is located at 1,500. – Aug 5, 2021
