BELOW are excerpts of viewpoints from two selected research houses on what investors can expect in the day ahead:
Inter-Pacific Research
Malaysian equities continue to make headway albeit the gains were modest as the buying strength was still tepid due to the still cautious environment following Bank Negara Malaysia’s (BNM) decision to lift the OPR (overnight policy rate) by 25 basis points (bps) to 2.5%.
For the most part, however, market conditions were mixed with leads still far-and-in between that left the market directionless. This also saw the broader market remaining subdued with traded volumes staying on the low side.
Although the key index has halted its streak of downtrend, the rebound has been measured of late due to the prevailing market cautiousness.
While we still see recovery continuing over the near term, it will remain at a slow pace as the buying strength is still meek.
Nevertheless, the overnight gains on Wall Street could project some market calmness to boost the FBM KLCI’s gradual uptrend as well as to allow the key index to end the week on a positive note.
The immediate target would be the psychological 1,500 level which may not be penetrated for the time being unless there is a pick-up in both market sentiments and investor interest.
Thereafter, the resistances are at the 1,506-1,510 levels while the supports are at 1,490 and 1,480 points respectively.
Malacca Securities Research
The FBM KLCI closed on a positive note, tracking the performance on Wall Street.
We believe the key index should find firmer footing moving forward following an extension of rebound on Wall Street as softening crude oil prices could ease the inflationary concerns on the global front.
Nevertheless, the mounting economic risk in China may pose some threat to the global market.
Meanwhile, Brent crude price saw a mild increase but remained below the US$90/barrel mark while crude palm oil (CPO) prices trended lower, hovering below RM3,600/metric tonne.
The FBM KLCI extended its gains and closed above its daily EMA9 level. Technical indicators remained mixed as the MACD Histogram extended a negative bar while the RSI hovered above 50.
Resistance is located at 1,510-1,530 while support is pegged along 1,465-1,485. – Sept 9, 2022
