BELOW are excerpts of viewpoints from two selected research houses on what investors can expect in the day ahead:
Inter-Pacific Research
Although Malaysian equities rebounded yesterday, it was more modest-than-expected as the upsides were tempered by lingering uncertainties over the direction.
As a result, there were only mild bargain hunting with the market conditions still mixed. Many lower liners and broader market shares also rebounded, but similar to the heavyweights, their rebound was also tepid with overall market volumes remaining mild.
We continue to think that Malaysian equities are likely to remain range-bound as there are still few significant developments to provide a sustainable lift to the market’s environment.
Concerns still abound over the state of the country’s pandemic condition as cases are still high and this could slow the move towards a full re-opening of the economy.
In the same vein, the country’s economic recovery could also be slowed, and this could once again leave market players to dither over their investment plans.
Amid the continuing sideway trend, we think the FBM KLCI is likely to stay within a tight range of between the 1,570 and 1,580 levels over the near term.
Beyond these levels, the other support and resistance levels are at 1,565 points and 1,585 points respectively.
Malacca Securities Research
Mirroring the overnight advances on Wall Street, the FBM KLCI posted mild gains as bargain hunting activities emerged after a heavy sell-down in the previous session.
With the continuation of the rebound on US stock markets, coupled with the improvement in vaccination rate in Malaysia, we expect buying interest to spill-over to stocks on the local front.
Meanwhile, non-ferrous metal prices remained under pressure due to an overall surplus market condition, while crude palm oil (CPO) price saw a decline.
The FBM KLCI staged a mild rebound but the key index continued to close below the SMA200 level. Technical indicators remained negative as the RSI is hovering below the 50 level.
The key index may hover below the 1,600 level as sentiment tilted to the downside, while the support level is envisaged around 1,555-1,565. – June 23, 2021
