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 close virtually unchanged yesterday as it attempted to find some support around the 1,430 level following its incessant falls over the past two months.
There was a sliver of recovery yesterday but it soon gave way as the buying interest remained thin among the index-linked stocks.
Conditions elsewhere were also still insipid as many lower liners and broader market shares ended in the red with losing stocks still dominating trades.
There may be some inkling of support emerging following the key index’s attempts at holding at the 1,430 level yesterday despite the selling pressure lingering as there are still few positive leads.
Although fresh buying interest remains meagre, there could be some near-term reprieve that may allow the key index to halt its streak of continuous selling and to also provide the opportunity for the key index to post a near-term recovery.
This may also allow the key index to find a bottom from the recent sell-down even as there are still few signs of a recovery as yet.
Therefore, the key index could end the week on an improved note with the near-term hurdles pegged at the 1,440 level followed by the 1,450 level.
On the downside, the supports are set at the 1,420- 1,423 levels.
Malacca Securities Research
The FBM KLCI finished little changed amid positive-bias regional performances.
While the overnight gains on Wall Street may spill over to the local bourse, we reckon any gains should be short-lived on the back of mounting concerns over potential recession as well as the inflationary pressure that may hit corporate earnings going forward.
Commodity-wise, Brent crude price continued to retreat by settling around the US$110/barrel mark while crude palm oil (CPO) price saw mild improvement around RM4,750/metric tonne.
Nevertheless, the surging fertiliser cost and worker shortages may be several challenges that is facing by the farmers.
The FBM KLCI continued to hover along its 52-week low amid lacklustre trading. Technical indicators remained negative with the MACD Histogram having extended a negative bar while the RSI remained below the oversold 30 level.
Support is set along 1,400-1,420 while the resistance is located at 1,450-1,480. – June 24, 2022
