BELOW are excerpts of viewpoints from two selected research houses on what investors can expect in the day ahead:
Inter-Pacific Research
As expected, Malaysian equities mounted a comeback yesterday following the easing of the US inflation rate. Much of the buying were from foreign funds that dominated trades and except for the healthcare index, most other Bursa indices were on the positive side.
Also, majority of the broader market shares and lower liners also made decent comebacks and collectively, this resulted in market breadth on the positive side on a 2-to-1 ratio. Volumes, however, were moderate.
The FBM KLCI will attempt to hold on to the 1,500 level as market players await for the announcement of the country’s 2Q 2020 gross domestic product (GDP) data that will be released at mid-day.
The prognosis is for the economy to sustain its recovery into the quarter on the combination of strong domestic and external activities.
This should help the key index to stay sanguine and allow the key index to hold steady over the near term albeit we do not rule out mild bouts of profit taking ahead of the weekend.
Resistances are pegged at 1,510 points followed by the 1,520 level. Apart from the 1,500 level, the other supports are at 1,495 and 1,490 points respectively.
Malacca Securities Research
The FBM KLCI climbed above the psychological 1,500 level amid positive regional market sentiment as investors cheered that the inflation is cooling off in the US for June.
While the market has stabilised along 1,500, we believe profit taking activities may pick up with the mixed trading tone on Wall Street overnight following a drop in Producer Price Index (PPI) data.
Hence, the broader market may take a breather for the short term especially the technology sector.
Commodities-wise, Brent crude is trading higher towards the US$100/barrel mark while crude palm oil (CPO) price has surpassed RM4,290/metric tonne.
The FBM KLCI surged above the key 1,500 level as the key index rallied above its daily EMA9. Technical indicators were mixed as the MACD Histogram formed a negative bar while the RSI hovered above 50.
The next resistance is pegged along 1,530-1,560 while the support is located at 1,460-1,480. – Aug 12, 2022
