BELOW are excerpts of viewpoints from two selected research houses on what investors can expect in the day ahead:
Inter-Pacific Research
The losing streak continues on the FBM KLCI as it lost further ground to settle at the 1,590-point support at the end of last week.
This comes after the key index regained traction the start of the day but gradually lost pace as selling pressure resumed to leave it at its lowest level in nearly seven weeks, mirroring the performance of regional indices.
However, lower liners mounted a mild rebound with buying support emerging on some of recently beaten down stocks while market breadth turned mildly positive.
Market conditions look to remain directionless with few noteworthy leads for market players to follow for the time being.
Consequently, the wait-and-see stance remains very much the dominant trend for now and with buying interest still on the thin side, profit taking may persist for the time being following the FBM KLCI’s already strong YTD (year-to-date) gains.
Although there have been pockets of buying over the past few sessions to reverse the consolidation trend, the prevailing selling trend could leave the key index nearing oversold.
Therefore, a rebound is already due as the key index could attempt to find some support at the 1,590 level.
Even so, we think any rebound is mild for now due to the lack of leads that could result in the key index finding the 1,600 level a formidable level to clear for now. In the interim, there is resistance at the 1,595 level while the supports are now pegged at 1,583 and 1,580 points respectively.
Malacca Securities Research
The Bursa exchange ended the week on a mixed note with the FTSE re-balancing activities taking place.
However, we observed that FBM70 and FBM Small Cap managed to rebound. Similarly, trading activities on Wall Street were mixed on the triple witching day with the S&P500 and Nasdaq ended lower led by Nvidia.
However, economic data such as the Flash manufacturing and services data as well as existing home sales came in better-than-expectation.
After the re-balancing activities, we believe our stock markets will turn positive with the emergence of bargain hunting activities.
On the commodity markets, Brent crude and gold have retraced below US$85/barrel and US$2,330/oz after the greenback rebounded on the back of better economic data while CPO (crude palm oil) price closed at RM3,900/metric tonne.
The FBM KLCI index ended lower dipping to the 1,590 level. The technical readings on the key index were negative with the MACD Histogram forming another negative bar while the RSI dropped below 50.
The resistance is envisaged around 1,605-1,610 while the support is set at 1,570-1,575. – June 24, 2024
