BELOW are excerpts of viewpoints from two selected research houses on what investors can expect in the day ahead:
Inter-Pacific Research
Although the key index continued to head south yesterday, it managed to recoup most of intraday losses on mild bargain hunting in the afternoon session following the Government’s announcement on the resumption of Parliamentary sitting at the end of the month.
The lower liners and broader market shares, meanwhile, fared better as they continue to mount a recovery from their oversold conditions by allowing for market breadth to be positive with traded volumes also increasing.
The holding pattern looks to sustain over the near term as the selling pressure has dissipated somewhat – particularly from foreign sources – albeit the underlying cautious sentiment remains due to the challenging economic environment that will also delay the much touted recovery from the pandemic conditions.
At the same time, there are also still few positive leads as market players await for further easing of the country’s COVID-19 situation and resumption of more economic activities before deciding on their next course of action.
The unsettled political undertone could also restrain some of the market’s near-term movement.
Nevertheless, the mild bouts of bargain hunting could continue, particularly on recently beaten down sector leaders and this should keep the key index still within the 1,530 and 1,540 levels for the time being.
The other support and resistance levels remain at 1,525 and 1,548 points respectively.
Malacca Securities Research
The FBM KLCI started the week with mild losses as market sentiment remained tepid on the back of high number of COVID-19 infections despite improvement in vaccination rates.
Nevertheless, the local bourse may see bargain hunting activities emerging especially in most of the oversold counters.
Meanwhile, millions of COVID-19 vaccine doses are expected to arrive in Malaysia in July, which could see another breakthrough in vaccination rate.
Commodities-wise, both the crude palm oil (CPO) and oil prices extended their uptrend move.
The FBM KLCI posted modest losses to settle at another fresh year-to-date low. Technical indicators remained mixed as the MACD Histogram has extended a green bar, while the RSI is hovering below the 30 level in the oversold region.
With that, bargain hunting activities may emerge with resistance set at 1,560-1,580, while the support level is envisaged around 1,500-1,520. – July 6, 2021
