BELOW are excerpts of viewpoints from two selected research houses on what investors can expect in the day ahead:
Inter-Pacific Research
Once again, the FBM KLCI went nowhere with the lack of leads on index heavyweights left it directionless as the benchmark index also looks to build-up a base at around the 1,530 level amid the lesser selling pressure.
Still, the continuing lack of leads left most institutional players on the sidelines. However, the broader market saw a firmer revival with many stocks rebounding from their bout of oversold, allowing for market breadth to stay positive.
There is no change to our immediate market view that the market environment is still one of cautiousness as the pandemic conditions remain heightened, despite the increasing inoculation process.
At the same time, the economic undertone is also little changed even as some states move into the Second Phase of the NRP as many of the movement restrictions remain.
With positive leads still far and in-between, the buying impetus is also lacking and the FBM KLCI is likely to maintain its sideway trend for now, lingering within the 1,530 and 1,540 levels for the time being.
The 1,525 and 1,548 levels are the next support and resistance levels respectively.
Malacca Securities Research
The FBM KLCI posted a mild decline as investors remained cautious while awaiting for the release of minutes from the US Fed Reserve June’s meeting for more clarity on the monetary policy.
With COVID-19 daily cases spiking above 7,000 mark despite improvement in vaccination rate, the local bourse is likely to stay wary while monitoring Malaysia’s Bank Negara interest rate decision tomorrow.
Meanwhile, oil prices dropped after talks between OPEC and the rally was unable to sustain following failure to agree on production policy.
The FBM KLCI settled lower for the third consecutive session as the key index traded sideways. Technical indicators remained mixed as the MACD Histogram has extended a green bar, while the RSI is hovering below the 30 level.
The key index may trade in a tight range moving forward with resistance set at 1,560-1,680, while the support level is envisaged around 1,500-1,520. – July 7, 2021
