BELOW are excerpts of viewpoints from two selected research houses on what investors can expect in the day ahead:
Inter-Pacific Research
The key index managed to end the week on a positive note after enduring a choppy session where the key index oscillated between the positive and negative territories.
The gains were helped by end of day bargain hunting on selected stocks in an otherwise lacklustre day.
Although the key index rose, the broader market was mired by uncertainties and ended mostly lower with market breadth remaining negative due to lack of market interest.
There should be further near-term upsides as the market undertone is becoming calmer despite the availability of few noteworthy leads.
This is boosted by the positivity in key global equity indices which are are also undergoing a revival following their steep falls over the past two months.
Back home, the results reporting season is coming to an end, but the spate of mixed results are not offering significant impetuses for market players to follow. As such, the thin market volumes are likely to prolong.
Nevertheless, the FBM KLCI looks to sustain its gains and will target the 1,550 level over the near term. If the level is passed, the next hurdles are at within the 1,552-1,558 levels, followed by the 1,563 level.
The supports, on the other hand, are at 1,540 and 1,553 points respectively.
Malacca Securities Research
The FBM KLCI rose in tandem with the regional peers on the back of continuous bargain hunting activities.
As Wall Street saw a recovery overnight, we expect to see improving trading activities on the local front, especially the technology sector with Nasdaq trading above 12,000.
Nevertheless, we expect traders to remain cautious going into final two days of the reporting season. On a side note, the FBM KLCI semi-annual review will be announced on June 2.
Commodities-wise, Brent crude is traded around US$119/barrel while crude palm oil (CPO) is priced around RM6,300/metric tonne.
The FBM KLCI extended gains to close at session’s high and above its daily EMA9 level. Technical indicators, however, remained mixed as the Histogram extended a positive bar while the RSI hovered below the 50 level.
The next support level is located at 1,500-1,530 while the resistance is pegged along 1,530-1,540. – May 30, 2022
