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 managed to recoup its intraday losses and to make minor headway to end the day on a positive note, bucking the mixed-to-lower trend among regional peers that were spooked by escalating trade dispute between China and the US.
For most of the day, market conditions were unsettled with technology-related stocks being the big losers albeit property stocks emerged as main gainers.
As a result, market breadth turned negative with little change in traded volumes.
Despite the FBM KLCI closing in the positive territory yesterday, we see market conditions staying unsettled heading into the end of the week with sentiments to remain affected by on-going trade dispute that may still weigh on technology-related stocks over the near term.
Also, the key index is tethering at the major resistance level of 1,634 points that would require a stronger push for the level to be cleared convincingly in our view, particularly a firmer uptick in buying volumes.
While there could still be attempts to pass the level, the downside bias appears to have the upper hand for now as the key index could consolidate further amid profit taking ahead of the weekend.
On the downside, there are supports at 1,625 and 1,620 points respectively while the other resistances remain at 1,636 and 1,642 points.
Malacca Securities Research
Despite profit-taking activities in the broader market, the FBM KLCI closed marginally higher. Trade participation showed that foreigners remained net buyers yesterday.
The trading tone has turned negative in the US with all major indices ending in the red as unemployment claims rose more than expected.
On the corporate front, investors will be looking at several key earnings reports from American Express, Travelers and Comerica to assess the health of the consumer and financial sectors.
Additionally, more volatility is expected towards the US election as President Joe Biden faces pressure from fellow Democrats to withdraw from the race.
In the commodity markets, Brent crude trended sideways around US$85/barrel while gold price dipped marginally towards the US$2,444/oz zone. Elsewhere, CPO (crude palm oil) price remained in the RM3,900-RM3,950/metric tonne range.
The FBM KLCI index ended marginally higher towards the 1,633 level. The technical readings on the key index were positive with the MACD histogram having formed another positive histogram bar while the RSI continues to trend above 50.
The resistance is envisaged around 1,648-1,653 while the support is set at 1,613-1,618. – July 19, 2024
