BELOW are excerpts of viewpoints from two selected research houses on what investors can expect in the day ahead:
Inter-Pacific Research
Malaysian stocks were mostly range-bound amid the continuing profit taking on some of the heavyweights that made significant headway of late.
However, sustained buying by foreign funds helped to limit the day’s losses and kept the key index comfortably above the 1,500 level.
Conditions in the broader market were also mostly directionless and this trimmed the fresh buying interest. Consequently, market breadth remained on the negative side while volumes were relatively insipid.
Market conditions are likely to remain mostly indifferent as the FBM KLCI appears to be toppish following its 7.0% rebound in July. With fewer impetuses and the ongoing results reporting season devoid of significant surprises, the wait-and-see conditions are likely to stay for the time being.
Local funds are still trimming their stakes but foreign funds could continue to provide the support to keep the key index mostly range-bound for now.
The sustained support should also keep the key index above the psychological 1,500 level for the time being. In the interim, there are supports at the 1,510 and 1,505 levels while the resistances are at 1,520 and 1,525 levels respectively.
Malacca Securities Research
The FBM KLCI extended losses amid weaker sentiment across the regional markets as investors continued to digest recent gains.
Given the US markets are still finding its direction, we believe the local bourse may take a breather amid softer inflow of foreign funds with the FBM KLCI encountering resistance along its SMA200 zone.
Investors will be focusing on the ongoing reporting season to position themselves in the stock markets. Commodities-wise, Brent crude price surged above the US$96/barrel mark while crude palm oil (CPO) traded above RM4,000/metric tonne.
The FBM KLCI registered marginal losses but remained well supported above its EMA120 level. Technical indicators remained positive as the MACD Histogram extended a positive bar while the RSI hovered above 50.
Resistance is set along 1,530-1,560 while the support is pegged at 1,500 followed by 1,480. – Aug 19, 2022
