BELOW are excerpts of viewpoints from two selected research houses on what investors can expect in the day ahead:
Inter-Pacific Research
The market ended firmer yesterday with a last minute push on selective index heavyweights, allowing for a stronger rebound from the previous session’s weakness.
There was also mild buying support on the broader market shares with gainers also ahead of losing stocks, albeit marginally.
Nevertheless, the continuing lack of impetuses still causes most market players to stay on the sidelines and leaving overall traded volumes on the thin side, little changed from the day earlier.
Despite yesterday’s rebound, we are maintaining our view that market conditions are still fluid with sentiments curtailed by the ongoing political and economic uncertainties that are also looking to extend and sustain the downside pressure for longer.
The jump in new domestic COVID-19 cases, coupled with the prognosis that cases will remain high for the next few weeks, may continue to dampen near-term outlook as it may potentially force lockdown to be extended, thus further dampening hopes for a quick economic recovery.
As such, the market’s fluidity is likely to leave the market stuck in a low gear for now with the key index headed nowhere as most market players are still on a wait-and-see stance.
The supports remain at 1,513 and the psychological 1,500 level. The resistances, meanwhile, are at 1,525 and 1,530 points respectively.
Malacca Securities Research
The FBM KLCI rebounded from losses as the key index was buoyed by bargain hunting activities, coupled with positive sentiment in the regional market following an upbeat China economic data.
Nevertheless, we expect the buying interest too be limited as the daily COVID-19 cases in the country increased to record high as more Delta variant cases were detected.
Meanwhile, the International Energy Agency (IEA) warned of a tighter oil market as OPEC+ is set to keep output levels unchanged despite rising global demand underpinned by global economic growth amid rising vaccination rates.
At the moment, crude oil is hovering above US$75/barrel while crude palm oil (CPO) traded closer to RM4,000/metric tonne.
The FBM KLCI staged a rebound from previous session’s losses as sideways trading mode continued.
Technical indicators are starting to turn positive as the MACD Histogram has extended a green bar, while the RSI is gradually moving above the 30 level. The key index could be finding some stability above the 1,500 support level, with resistance set at 1,525-1,548. – July 14, 2021
