BELOW are excerpts of viewpoints from two selected research houses on what investors can expect in the day ahead:
Inter-Pacific Research
Although the FBM KLCI was in the green for most of the day, an end-of-day selling on certain heavyweights resulted in the key index ending 1H 2022 on a downbeat note – and lower by nearly 8.0% year-to-date (YTD).
For the most part, trading was directionless but construction stocks were among the top movers in the broader market. The lower liners were also broadly lower as the sustained selling cumulated in losers still ahead of gaining stocks for the day.
The near-term outlook remains insipid as the global recession fears continue to ring that would leave sentiments at a low gear at the start of the new quarter.
While the country is still relatively insulated from the concerns due to its more diversified economic base, it will not be sheltered from these concerns that would also leave the equity market sentiments guarded for longer.
As a result, the insipid market trend is likely to prevail with the downsides remaining a near-term feature.
Fresh buying interest remains thin due to the lack of positive catalysts and the FBM KLCI may retreat to its immediate support at the 1,437-1,440 levels.
If this level fails to hold, it could veer to the other major support at the 1,430 level. The resistances, meanwhile, are at the psychological 1,450 level and at 1,461 points respectively.
Malacca Securities Research
The FBM KLCI ended 1H 2022 in the negative territory as the key index dipped in the final-hour sell-down.
As Wall Street has registered steep decline on the final trading session of 1H 2022, we believe the weak sentiment is likely to spill over to the regional markets as well as the local bourse which has been struggling to find a bottom.
Meanwhile, concerns over inflation and recession continued to ripple through the market. Brent crude price fell to US$109/barrel mark on the back of uncertainties over future OPEC+ output. Meanwhile, gold price extended its downtrend move.
The FBM KLCI pulled back and decline below its daily EMA9 level. Technical indicators remained mixed as the MACD Histogram extended a positive bar while the RSI is hovering below the 50 level.
The next resistance is pegged at 1,460-1,480 while the support is located along 1,400-1,420. – July 1, 2022
