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 mounted a rebound yesterday but most of its gains came at the end of the session on a last-minute haul on selected index heavyweights.
For the most part, market conditions were cautious with market breadth remaining negative as many of the lower liners and broader market shares were still seeing substantive selling pressure.
However, bargain hunting on banking stocks aided to the key index’s gains albeit energy stocks were the biggest losers for the day.
Despite yesterday’s rebound, market conditions are still insipid, undermined by the inflationary and interest rate concerns that will continue to dampen investor sentiments.
As a result, yesterday’s bargain hunting could give way to renewed selling pressure as the buying interest is still wearing thin and this could prompt quick profit taking actions that could see the index heavyweights ending the week on a low note again.
Furthermore, there is still considerable uncertainties among global equity markets that would leave market players wary and subdued for longer. The supports are at 1,470 and 1,465 points while the resistances are at 1,480-1,483 levels.
Malacca Securities Research
Although there were signs of rebound on the FBM KLCI, the pace of recovery is expected to be measured over the foreseeable future.
Following the weakness on Wall Street overnight, we believe that volatility will remain a feature on stocks across the Bursa exchange amid an un-easing concerns over rising risk of recession stemmed by persistently high inflation and on-going monetary tightening environment.
The lower liners may face another round of sell-offs as investors are likely to unwind their position as market uncertainties prevails.
Meanwhile, Brent crude price advanced to close a hair below US$120/barrel but crude palm oil (CPO) slipped below RM5,500/metric tonne.
The FBM KLCI gapped up and manage to stay afloat for the session. Technical indicators, however, remained negative as the Histogram has extended a negative bar while the RSI threads below 50 after bouncing off the oversold position.
Support is pegged along 1,430-1,450 while the resistance is set at 1,500-1,530. – June 17, 2022
