BELOW are excerpts of viewpoints from two selected research houses on what investors can expect in the day ahead:
Inter-Pacific Research
There were more downsides on Bursa Malaysia with stocks slipping for a second successive day amid weak investor sentiments that sent most market players to the sidelines.
The broad sell-off cumulated in total losers overwhelming gainers by nearly a 4-to-1 ratio with the broader market shares bearing the brunt of the sell-down.
On the key index, however, there was mild support to limit the day’s losses as it closed at the 1,615 level. Construction stocks were the biggest losers yesterday.
The still unsettled near-term market conditions could see FBM KLCI-listed stocks remaining choppy in the day ahead.
Although there appears to be pockets of buying interest that could provide mild support, sentiments are still affected by sell-off of technology stocks and weak corporate results from some of the world’s biggest companies that sent many key global stock indices lower of late.
As a result, selling activity on Bursa Malaysia may linger into the last trading day of the week even as there may be some support that could help to limit some of the market’s weakness.
On the downside, the FBM KLCI’s supports are pegged at 1,610 points and 1,605 points respectively. On the other hand, the hurdles are at the 1,620 points and 1,625 points respectively.
Malacca Securities Research
The FBM KLCI and the broader markets continued to trade lower as further profit-taking activities took place, tracking the weaker US stock market performance.
However, we noticed some bargain-hunting activities in the US after better-than-expected GDP (gross domestic product) data at 2.8% compared to the 2.0% consensus while unemployment claims were slightly lower than consensus.
Also, traders will be watching out for the core PCE (personal consumption expenditures price) index later tonight as the data is crucial for the US Federal Reserve to make a decision on the direction of interest rates going forward.
In the commodity markets, Brent crude rebounded off the US$81/barrel support amid upbeat US economic data while gold price settled below the US$2,400 level. Elsewhere, CPO (crude palm oil) is positively biased above RM3,900/metric tonne.
The FBM KLCI index ended lower around 1,615 level. The technical readings on the key index were negative with the formation of negative MACD histogram for the past two days and the RSI having dropped below 50.
The resistance is envisaged around 1,630-1,635 while the support is set at 1,595-1,600. – July 26, 2024
