BELOW are excerpts of viewpoints from two selected research houses on what investors can expect in the day ahead:
Inter-Pacific Research
The FBM KLCI made a strong comeback yesterday to end its downward streak as bargain hunting emerged to pick-up some of the beaten down stocks.
The gains were also in tandem with the recovering regional market performance. On Bursa Malaysia, the rebound in telecommunication stocks led the key index higher with many lower liners and broader market shares also making big moves.
Expectedly, market breadth was positive but traded volumes were little changed.
Malaysian equities should end the week on a firmer note, taking cue from the overnight positivity of key global equity indices.
This should help the FBM KLCI to sustain its recovery from its near oversold conditions as the market’s undertone is showing signs of improvement after its weakness streak.
However, there could be some bouts of quick profit taking following yesterday’s big moves, particularly among telecommunication stocks that made strong gains yesterday.
This may slow the key index’s recovery even as the upside bias remains for the time being. On the upside, the 1,500 level is the immediate hurdle followed by the 1,507 level. The supports, meanwhile, are at 1,490 and 1,484 points respectively.
Malacca Securities Research
The FBM KLCI jumped on a broad-based recovery as bargain-hunting activities took place following a six-session decline.
As sentiment across regional markets have shown signal of improvement, we believe follow-through buying activities may emerge on the local bourse.
However, investors should trade in a cautious undertone ahead of Malaysia’s inflation rate which is due to be released at noon.
Commodities-wise, Brent crude price fell below the US$100/barrel mark while crude palm oil (CPO) traded above RM4,200/metric tonne.
The FBM KLCI snapped a six-session losing streak and rebounded above its daily EMA9 level. Technical indicators turned mixed as the MACD Histogram extended a negative bar while the RSI crossed above 50.
Should the key index breached above 1,500, the next resistance is located at 1,530 while support is pegged along 1,460-1,480. – Aug 26, 2022
