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 started 2H 2022 on a firmer note, gaining some ground to end the day near the 1,450 level with mild bargain hunting activities on financial services stocks.
However, glove maker stocks were the main losers on concerns over tighter margins.
Conditions elsewhere were mixed as market breadth stayed on the negative territory due to lack of following where traded volumes slipped below the 2 billion level to among its lowest level for the year.
Notwithstanding Friday’s gains, there is no change to the immediate market outlook as it continues to be mired by uncertainties over the state of the global economic performance that is tipping closer into recessionary conditions.
However, the FBM KLCI could look to fortify its position around the 1,450 level as it looks to build up a firmer base around the psychological level albeit firmer gains may still be difficult to come by as market interest is still thin.
As it is, there are still few noteworthy leads for market players to follow, hence this is likely to keep the upsides modest for now.
Above the 1,450 level, the next hurdles are at 1,451-1,460 levels. The supports, on the other hand, are at 1,440-1,442 levels, followed by the 1,432 level.
Malacca Securities Research
The FBM KLCI outperformed the regional peers as investors picked up beaten-down stocks, led by the banking, telecommunication and media heavyweights.
While late-day rebound lifted Wall Street, we expect volatility to persist on the local bourse as inflationary pressure and recession fears still dominate the market.
Investors are likely to stay cautious prior to Malaysia’s interest rate decision and the US FOMC (Federal Open Market Committee) meeting (later this month).
Meanwhile, Brent crude price rose, trading above US$111/barrel due to supply outages in Libya and expected shutdowns in Norway.
The FBM KLCI rebounded on the first trading day of 2H 2022 amid lower trading volume to close along EMA9. Technical indicators remained mixed as the MACD Histogram has extended a positive bar while the RSI hovered below 50.
Resistance is pegged along 1,460-1,480 while the support is located at 1,420 followed by 1,400. – July 4, 2022
