BELOW are excerpts of viewpoints from two selected research houses on what investors can expect in the day ahead:
Inter-Pacific Research
Malaysian equities regained some traction following the steep sell-off at the start of the week with the mild rebound aided by the announcement of new blanket loans moratorium and wage subsidies to tide some segments of the economy through the ongoing lockdown.
Although most stocks rebounded, there was still hesitation as market breadth was still mixed and fresh buying was still relatively light to leave the upsides modest.
Although yesterday’s bounce was welcomed to arrest the pullback, we still think that the near-term market outlook is clouded by the increasing uncertainties over the country’s economic direction.
Concerns over the unabating COVID-19 cases are also keeping most market players on a cautious note while prompting them to stay away a while longer.
Nevertheless, we think that the market could still be attempting to find some short-term stability and to hover near the psychological of 1,550 level on the back of continuing mild bargain hunting actions.
This follows the recent sell-off that is already seen as overdone with some measure of support emerging to lift the market from oversold.
Above 1,550 points, the next hurdle is at 1,557 points, while the supports are pegged at 1,540 and 1,532 points respectively.
Malacca Securities Research
The FBM KLCI rebounded from on the back of bargain hunting activities but gains were capped as investors took cue from the weak sentiment in the regional markets.
The bullish momentum, however, might not sustain on the back of recent political developments as well as ongoing battle against the COVID-19 pandemic; daily confirmed cases are still hovering around the 5,000 and 7,000 levels.
Meanwhile, technology stocks remain attractive with the ongoing developments on IoT (internet of things), 5G and electric vehicle.
Commodities-wise, both the crude palm oil (CPO) and oil prices moved a tad higher.
The FBM KLCI bounced from a year-to-date low level in the previous session but the key index was still traded below the SMA200 level.
Technical indicators remained negative as the MACD Histogram has extended a red bar, while the RSI hovered below the 50 level.
The key index may trade within the resistance level set at 1,570-1,590, with the support level located around 1,540 given the pervasive cautious sentiment. – June 30, 2021
