BELOW are excerpts of viewpoints from two selected research houses on what investors can expect in the day ahead:
Inter-Pacific Research
Malaysian equities mounted a quick rebound on Friday with the key index regaining the 1,590 level at the close.
Much of the recovery emerged towards the end of the day on buying interest of selected index-linked stocks.
Nevertheless, the key index’s positivity also rubbed off on many lower liners as they also mounted a rebound with indices like the FBM Small Cap and ACE Market ending the day higher. Market breadth was positive but traded volumes were little changed.
Although the key index managed to reclaim the 1,590 level at the end of last week, market conditions are still largely directionless for now.
As it is, there are still few pointers to encourage fresh buying interest from market players and this could leave the key index to continue drifting for the time being.
The FBM KLCI has been struggling to maintain its position of late and this is also forcing market players to lock-in profits that could prolong the on-going insipid conditions.
As such, the key index is still at the crossroads as it attempts to hover around the psychological 1,600 level which is also its major hurdle for the time being.
Nevertheless, the largely sideway trend could allow the key index to build up a base that could potentially be a springboard for the key index to head higher in 2H 2024 after it managed to post a credible 9.3% gain in 1H 2024.
There is an interim resistance at 1,595 points while the supports are at 1,585 and 1,580 points respectively.
Malacca Securities Research
Stocks on the Bursa exchange ended the final trading day of 1H 2024 on a positive note, lifted by selected telco companies like CelcomDigi Bhd and Maxis Bhd.
Wall Street closed lower despite reports suggesting consumer spending rose moderately in May.
Meanwhile, traders will be on the watch-out for the release of several key economic data points, including the ISM manufacturing PMI (purchasing managers’ index) and jobs data like non-farm employment and the unemployment rate.
On the commodity front, Brent crude ranged between US$84-US$85/barrel as the EIA’s report suggested rising inventories. Gold price and CPO (crude palm oil) traded flat within the US$2,320-US2,330/oz range and RM3,900-RM4,000/metric tonne respectively.
The FBM KLCI index ended higher towards the 1,590 level. The technical readings on the key index were negative with the MACD Histogram forming a negative bar while the RSI is below 50.
The resistance is envisaged around 1,605-1,610 while the support is set at 1,570-1,575. – July 1, 2024
