BELOW are excerpts of viewpoints from two selected research houses on what investors can expect in the day ahead:
Inter-Pacific Research
The FBM KLCI extended its gains for a second straight day. However, the gains were muted due to fewer catalysts to sustain a firmer upside.
Consequently, market conditions turned mixed with total gainers just ahead of losers for the day as quick profit taking emerged, particularly among broader market shares.
On the key index, buying interest was still tentative albeit it was in the positive zone for the entire session. Traded volumes, meanwhile, retreated nearly 10% from a day earlier.
We see market conditions remaining unsettled heading into the long weekend with more quick profit taking a possibility as the follow-through buying interest appears benign.
As it is, there remain few noteworthy leads for market players to follow, both from domestic and overseas sources with market players could still maintain a largely cautious stance for the time being.
Under the prevailing environment, the near-term market sentiments are likely to stay insipid although the key index could still attempt to linger close to the 1,600 psychological level for it has seemingly formed a base there.
Further above, the hurdles are at 1,620 and 1,624 points respectively. The immediate support is at 1,610 points, followed by 1,605 points.
Malacca Securities Research
Although mild profit taking activities were seen on Bursa exchange, the FBM KLCI, FBM 70 and FBM Small Cap managed to eke out marginal gains led by healthcare stocks.
While markets in the US were closed for the Independence Day public holiday, traders will be monitoring data such as the (i) average hourly earnings; (ii) non-farm employment change; and (iii) unemployment rate which will shape the narrative and decision making of the US Federal Reserve going forward.
On the commodity markets, Brent crude experienced a pennant formation breakout amid falling US inventories and better future demand outlook while gold price hovered around US$2,350/oz. Meanwhile, CPO (crude palm oil) pulled back but still hover above the significant support of RM4,000/metric tonne.
The FBM KLCI index ended marginally higher towards 1,616 level. Technical readings on the key index were positive with the MACD histogram forming another positive bars while the RSI surged above 50.
The resistance is envisaged around 1,631-1,636 while the support is set at 1,596-1,601. – July 5, 2024
