BELOW are excerpts of viewpoints from two selected research houses on what investors can expect in the day ahead:
Inter-Pacific Research
The key index tumbled again yesterday, surrendering the gains it made a day earlier as selling pressure resumed in line with the weaker regional equity markets on renewed concerns over China’s economic direction and weakness in the global tech sector.
Similarly, the broader market also retreated with sentiments affected by the Securtities Commission’s (SC) lawsuit against YNH Property Bhd’s largest shareholder for market manipulation.
Consequently, losers topped gainers by more than a 2-to-1 ratio with volumes thinning further.
Near-term market conditions are likely stay insipid due to the continuing weak sentiments that could leave more market players on the sidelines for the time being.
Fresh concerns over the slower global economic outlook coupled with market players awaiting the US inflation rate report could keep the market wary for now.
Back home, there are also few noteworthy leads for market players to follow. As a result, selling interest could extend further amid the fewer available market catalyst with the key index possibly ending the week on a subdued note.
With the key index resting at the 1,585 level, the 1,580 level has now become the immediate support, followed by the 1,575 level. Above the immediate resistance at 1,585 points, the ensuing resistance is at the 1,590 level.
Malacca Securities Research
Resumption of selling pressure has led to a lower closing on the FBM KLCI, FBM70, and FBM Small Cap.
Overall, market sentiment remains weak as investors could be awaiting fresh leads.
Meanwhile, three of the US major benchmark indices ended higher amid healthier economic data as (i) the US GDP (gross domestic product) came in at 1.4%, (ii) the US durable goods orders unexpectedly rose in May although (iii) pending home sales saw a surprise decline in May as demand cooled.
Still, traders will be watching the PCE (personal consumption expenditures) data that will be released later tonight for further clarity on the US Federal Reserve’s direction moving forward.
On the commodity markets, Brent crude rebounded strongly as traders speculated on higher summer demand while gold price traded along US$2,320-US$2,330/oz. Meanwhile, CPO (crude palm oil) traded below RM3,900/metric tonne.
The FBM KLCI index ended lower dipping towards the 1,584 level. The technical readings on the key index were negative with the MACD Histogram forming a negative bar while the RSI oversold.
The resistance is envisaged around 1,599-1,604 while the support is set at 1,569-1,564. – June 28, 2024
