BELOW are excerpts of viewpoints from two selected research houses on what investors can expect in the day ahead:
Inter-Pacific Research
Malaysian stocks jumped yesterday with the FBM KLCI benefitting from increased foreign buying to lift it past the 1,500 level to close at highest level in two months.
However, most of the gains emerged towards the end of the session as banking stocks like Maybank and Public Bank were chased up.
Conditions in the broader market were also positive with total gainers ahead of losers on a 2-to-1 ratio. The day’s volume also climbed back comfortably above the 2 billion shares mark.
Market conditions are turning toppish again following yesterday’s push which may give rise to profit taking activities to end the week.
Most of the recent gains were on low volumes and may not be sustained as there is still a lack of firm follow through buying interest due to the still few catalysts and continuing wariness over the market’s direction.
As such, the longevity of the upsides will be tested again even as the selling pressure is likely to be mild for the time being.
However, the FBM KLCI should be able to find ample support at the 1,500 level for the time being with the ensuing support set at 1,495 level. On the upside, the resistances are at 1,510 and 1,523 points respectively.
Malacca Securities Research
The FBM KLCI bounced higher in tandem with most of the regional peers, underpinned by buying momentum in selected utilities, telecommunication and banking heavyweights.
We believe sentiment is likely to stay positive bias for the session as investors have shrugged off the US-China geopolitical risks to focus on the upcoming earnings season.
Commodities-wise, Brent crude price declined further to the US$94/barrel mark, the lowest level since the start of the Ukraine and Russia tension while crude palm oil (CPO) price saw mild improvement and remained above RM3,800/metric tonne (MT).
The FBM KLCI surged above the key 1,500 level to close at session high while the EMA9 and EMA20 have been turning upwards. Technical indicators remained positive as the MACD Histogram has extended a positive bar while the RSI hovered above 50.
Investors should watch the next resistance along 1,530-1,550 with support set at 1,460-1,480. – Aug 5, 2022
