BELOW are excerpts of viewpoints from two selected research houses on what investors can expect in the day ahead:
Inter-Pacific Research
Malaysian stocks continue to recover amid the easing domestic political uncertainties that had gripped the country for the past few months.
At the same time, the easing pandemic conditions were also helping to shore-up the equity market sentiments.
This allowed for the return of some fresh buying interest and also helped gaining stocks to outpace losing stocks for the day.
With market conditions finding some measure of stability, we see further near-term gains as the bouts of fresh buying look to sustain.
The nibbling will also be helped by the easing restrictions that would also allow for more economic activities to restart and bring some reprieve to the country’s economic undertones.
Nevertheless, there is still some hesitation as the recovery could still be selective and at a slow pace until the country moves into the final phase of the recovery which may still be months away.
For now, the gradual upsides will persevere with the key index targeting the next hurdles at 1,525 and 1,530 points respectively. The supports, on the other hand, are at 1,529 and 1,515 points respectively.
Malacca Securities Research
The FBM KLCI extended gains for a second session on the back of buying interest in recovery-theme stocks as well as optimism over political stability following the appointment of Malaysia’s new Prime Minister.
Also, the declining trend in COVID-19 daily cases may trigger more focus in the recovery theme sectors from market participants.
Meanwhile, the local sentiment is supported by optimism amid the earnings season.
Commodities-wise, both crude palm oil (CPO0 and crude oil prices rebounded with the Brent oil closing above the US$68/barrel level.
The FBM KLCI started the week on a positive note, hovering firmly above the daily EMA9 and EMA20 levels. Technical indicators turned positive as the MACD Histogram has turned into a green bar while the RSI hovered above the 50 level.
Investors may trade towards the next resistance located around 1,540 while the support level is envisaged around 1,500. – Aug 24, 2021
