BELOW are excerpts of viewpoints from two selected research houses on what investors can expect in the day ahead:
Inter-Pacific Research
Yet again, Malaysian equities failed to follow through on the gains they attained in the previous session as Friday’s upsides evaporated on quick profit taking actions.
Selling became prevalent again following the Government’s hint that it could cut the year’s GDP forecast to around 4.0% year-on-year in view of the challenging economic environment.
Most stocks fell with losers being ahead of gainers on a 3-to-1 ratio as traded volumes remained thin.
The market’s inability to string together a rebound is preserving its predominately insipid trend as sentiments are still affected by the pandemic conditions and weak economic prognosis for the rest of the year.
Coupled with the lack of domestic corporate developments, the near-term market environment is likely to stay insipid amid the lack of fresh buying impetuses.
Therefore, we see the key index continuing to drift further with the downside bias still the dominant trend.
The supports are now at the psychological 1,500 level with the 1,495 level the following support. The hurdles, meanwhile, are at 1,520 and 1,530 points respectively.
Malacca Securities Research
Consumer, banking and glove stocks pulled the FBM KLCI down amid regional uptrend, reflecting negative sentiment in the market affected by political developments and potential downward revision of country’s economic growth projection.
However, we still expect mild bargain hunting activities to emerge amid the improvement in vaccination rate across the country.
Commodities-wise, oil price fell marginally (but still hovering above US$75) over concerns about global economic recovery on the back of spreading COVID-19 variants.
The FBM KLCI retreated after the rally in the previous session, but the key index was supported above the 1,500 level.
Technical indicators remained mixed as the MACD Histogram has extended a green bar, while the RSI is hovering below the 30 level. Resistance is set at 1,525-1,548 while the support level is pegged around 1,500. – July 13, 2021
