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 upsides on Bursa Malaysia as the key index closes in on the 1,450 level for the first time in three weeks.
This follows the relative calmness in global equities that were also lifted by a spate of better-than-expected corporate results.
All Bursa indices ended the day in the green with the industrial products & services index leading the gainers. Expectedly, market breadth remained positive but traded volumes moderated.
The upsides on Bursa Malaysia are expected to be continue until the end of the week amid the sustained positivity for equities that are mounting a decent rebound from their extended downtrend.
The gains will help the key index to extricate from its two-year low as it looks to regain some more traction on the back of the prolonged mild bargain hunting activities.
This will also allow the market to temporarily cast aside the ongoing economic concerns even as the upsides may become more selective due to the still low follow through buying interest and potentially quick profit taking activities.
On the upside, the target is now at 1,455 and if it is cleared, the next target is at 1,460 points. The supports, meanwhile, are at 1,440 and 1,430 points respectively.
Malacca Securities Research
The FBM KLCI propelled on the back of selected banking and industrial products & services heavyweights amid broad-based bargain hunting activities.
The uptrend moves on Wall Street overnight signalled that the buying support on the local bourse should remain intact.
Commodities-wise, Brent crude price slipped but still trading above the US$103/barrel mark after Libya increased output after the restrictions on exports were lifted.
Meanwhile, the European Central Bank (ECB) surprised the markets by raising interest rates for the first time in 11 years.
The FBM KLCI extended gains for the second session to close above its daily EMA20 level. Technical indicators turned positive as the MACD Histogram has extended a positive bar while the RSI has crossed above 50.
Resistance is set at 1,460-1,480 while the support is envisaged along 1,420-1,430. – July 22, 2022
