BELOW are excerpts of viewpoints from two selected research houses on what investors can expect in the day ahead:
Inter-Pacific Research
There were further profit taking yesterday that left the key index to close just a shade below the 1,550 level amid the continuing lack of catalyst.
Conditions were mixed-to-lower as a result with healthcare stocks again the big losers. However, technology stocks seem to be finding some reprieve following their recent sell-offs to emerge among the day’s big movers.
Still, the overall market participation remains insipid with market breadth also staying on the negative side.
The near-term market condition is still devoid of substantive catalysts to reverse its insipid trend and the FBM KLCI is set to dither for longer.
Investor sentiments are likely to stay guarded for the most part as many market players will continue to stay on the sidelines until there is more clarity on its direction.
Nevertheless, there could be bouts of support to keep the FBM KLCI near the psychological 1,550 for the time being.
At the same time, selling pressure may also be abating, and this could help the key index to build up a base around the 1,550 level.
On the upside, the hurdles are at the 1,555-1,560 levels followed by the 1,563 level. The supports, on the other hand, are at the 1,543-1,547 levels and 1,540 points respectively.
Malacca Securities Research
The FBM KLCI declined marginally into the negative territory as cautious sentiment persisted on the local bourse.
Nevertheless, we expect to see bargain hunting activities across the sectors given the strong rebound on Wall Street overnight.
We expect crude oil prices to stay elevated for the near term on the back of reduced Russian output and larger-than-expected drawdown in the US inventories, hence inflationary pressure is unlikely to abate anytime soon.
Both crude palm oil (CPO) and Brent crude oil prices were on the rise with the former trading around RM6,500/metric tonne while the latter trading above US$117/barrel.
The FBM KLCI fell below its daily EMA9 level on the back of mild profit taking activities. Technical indicators were mixed as the MACD Histogram has extended a positive bar while the RSI is hovering below the 50 level.
The next support level remained at 1,500-1,530 while the resistance is pegged around 1,570-1,580. – June 3, 2022
